Gramm-Leach-Bliley Act

The Gramm-Leach-Bliley Financial Services Modernization Act of 1999 repealed the Glass-Steagall Act opening up competition among banks, securities companies and insurance companies. The Glass-Steagall Act prohibited a bank from offering both Investment and Commercial banking services. The Gramm-Leach-Bliley Act allowed Investment and Commercial banks to consolidate, for example Citicorp and Salomon.

Certain rules still exist which cause some seperation between the investment bank and the commercial bank. For example, the commercial banks aren't allowed to pay commision to their employees who convince customers to also use some investment services. They are only allowed to pay them a small fee for simply setting up appointments to meet with a fincancial advisor.