What is the Gramm-Leach-Bliley Act?

The Gramm-Leach-Bliley Act, also known as the Financial Services Modernization Act of 1999, was enacted in Delaware and is a federal law that expands banking law and allows financial institutions to provide a wider range of services. The Act repealed part of the Glass-Steagall Act, which had kept companies from mixing banking, insurance, and securities activities. By allowing these companies to merge, the Act eliminated the boundaries between them, allowing for more efficient and less expensive operations. The Act also mandates that financial institutions have an increased responsibility in protecting the privacy of both customer and non-customer data, and requires them to explain to their customers how their personal information is used. Institutions must also have measures to protect this data from outside threats. The Act applies to any institution in Delaware that offers banking, securities, and insurance services to customers, and includes consumer protections that prohibit specific types of unfair or deceptive practices. The Gramm-Leach-Bliley Act is an important piece of federal legislation that affects and protects the banking industry in Delaware. By eliminating restrictions on the combination of different types of financial services, the Act has resulted in allowing more efficient operations. In addition, the Act increases and clarifies privacy standards for consumers and strengthens consumer protection laws.

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What is the Gramm-Leach-Bliley Act?

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