The The Gramm-Leach-Bliley Act (GLBA) of 1999, also known as the Financial Services Modernization Act, was passed in order to modernize the financial sector of the United States. Namely, it removed the restrictions imposed by the Glass-Steagall Act of 1933 that prevented any single financial institution from serving as a commercial bank, investment bank, or stock brokerage, and insurance company at the same time. Recognizing that mergers between different sectors of the financial industry would result in consolidated institutions with unprecedented access to consumers’ private data, Congress also imposed new privacy requirements on financial firms.
