Changes

'''Financial Holding Companies''' ('''FHCs''') were created with passage of the Financial Modernization Act of 1999, which also repealed parts of the [[Glass-Steagall Act]] regulating Bank Holding Companies. In signing President [[Bill Clinton]] remarked, "It is true that the Glass-Steagall law is no longer appropriate for the economy in which we live. "<ref>[http://www.treasury.gov/press-center/press-releases/Pages/ls241.aspx STATEMENT BY PRESIDENT BILL CLINTON AT THE SIGNING OF THE FINANCIAL MODERNIZATION BILL,] 11/12/1999, [[U.S. Department of the Treasury]] Press Center.</ref><ref>[http://www.usnews.com/opinion/blogs/economic-intelligence/2012/08/27/repeal-of-glass-steagall-caused-the-financial-crisis Repeal of Glass-Steagall Caused the Financial Crisis,] By James Rickards, USNews, August 27, 2012.</ref>

'''Financial Holding Companies''' ('''FHCs''') were created with passage of the Financial Modernization Act of 1999, which also repealed parts of the [[Glass-Steagall Act]] regulating Bank Holding Companies. In signing President [[Bill Clinton]] remarked, "It is true that the Glass-Steagall law is no longer appropriate for the economy in which we live."<ref>[http://www.treasury.gov/press-center/press-releases/Pages/ls241.aspx STATEMENT BY PRESIDENT BILL CLINTON AT THE SIGNING OF THE FINANCIAL MODERNIZATION BILL,] 11/12/1999, [[U.S. Department of the Treasury]] Press Center.</ref><ref>[http://www.usnews.com/opinion/blogs/economic-intelligence/2012/08/27/repeal-of-glass-steagall-caused-the-financial-crisis Repeal of Glass-Steagall Caused the Financial Crisis,] By James Rickards, USNews, August 27, 2012.</ref>

The formal repeal of Glass-Steagall was recognition of changes that had already taken place, such as the [[Federal Reserve]]s' revision of Regulation Y, making it easier for Bank Holding Companies with a satisfactory [[Community Reinvestment Act]] (CRA) rating to receive quicker approval for new acquisitions and engage in other activities.<ref>[http://www.frbsf.org/publications/community/investments/cra97-3/regy.html Regulation Y Revised - Changes to the Federal Reserve Application Process,] Community Investments, Volume 9; No. 3; Summer 1997, By Mike Johnson, Applications Officer, Federal Reserve Bank of San Francisco.</ref>   

The formal repeal of Glass-Steagall was recognition of changes that had already taken place, such as the [[Federal Reserve]]s' revision of Regulation Y, making it easier for Bank Holding Companies with a satisfactory [[Community Reinvestment Act]] (CRA) rating to receive quicker approval for new acquisitions and engage in other activities.<ref>[http://www.frbsf.org/publications/community/investments/cra97-3/regy.html Regulation Y Revised - Changes to the Federal Reserve Application Process,] Community Investments, Volume 9; No. 3; Summer 1997, By Mike Johnson, Applications Officer, Federal Reserve Bank of San Francisco.</ref>