Gramm-Leach-Bliley Act

Legislation that broke down the long-time prohibition against one bank offering commercial loans and providing investment banking services. The act allows one bank within a holding company structure to own an insurance company, sell securities to the public, and provide loans to companies. It repeals the 66-year old Glass-Steagall Act, which prevented banks, securities firms, and insurance companies from being affiliated. However, non-financial companies are prevented from owning banks.