SkipCaptcha, Automoderated users, edit
2,275
edits
Changes
Financial holding companies (view source)
Revision as of 04:36, March 7, 2013
, 04:36, March 7, 2013a start
The Gramm-Leach-Bliley Act passed, which repealed parts of the [[Glass-Steagall Act]]<ref>The formal repeal was a recognition changes had already taken place, such as the [[Federal Reserves]]' revision of Regulation Y to make it easier for Bank Holding Companies with a satisfactory [[Community Reinvestment Act]] (CRA) rating to receive quicker approval for acquisitions and engage in other activities. [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> ; in signing [[President Clinton]] remarked Glass-Steagall was "no longer appropriate."</ref> regulating Bank Holding Companies (BHCs) and passed during the [[Great Depression]]. The new law let commercial and investment banks to merge with insurance companies into newly created '''Financial Holding Companies''' ('''FHCs'''), and allowed for [[proprietary trading]] on their own behalf. FHCs could be encumbered with the bad debts and risky investments non-banks held and BHCs specifically had to stay away from. The result was "too big to fail" behemoths like Citigroup.
==Notes==
<references/>
[[Category:Economics]]
[[Category:Business]]
==Notes==
<references/>
[[Category:Economics]]
[[Category:Business]]