Academic journal article ABA Banking Journal

Powers and Affiliations

Academic journal article ABA Banking Journal

Powers and Affiliations

Article excerpt

This, in all its length, is the centerpiece--the core--of the Gramm-Leach-Bliley Act. Coincidentally arriving during the tenth anniversary of the felling of the Berlin Wall, the new law marks the effective end of business-line barriers faced by banks and bank holding companies.

What's more, an effective mechanism has been created to enable banking regulators and the Treasury Department to adapt banking rules to the quickly evolving financial services business without having to go back to Congress--at least, as presently envisioned. True, there are some limits on concentration, and much of the bulldozing of the Glass-Steagall rubble will wait until March 11, but the heavy lifting is done. There are new details to consider--for instance, the alleged "double counting" of capital in national banks will now be subject to a haircut, so that organizations don't get to use capital invested in new activities toward bank regulatory capital requirements.

ABA's Jim McLaughlin presents an explanation and strategic look at these provisions of the new law beginning on p.12 of this report.

Voices:

"This bill will allow Dicky Flatt, a printer in Mexia, Texas, to go to the bank and take the checks he has received in his print shop that day and do his banking, deal with his insurance business, work on the retirement program that he and his wife and his employees have, all in one location with all the efficiencies and synergies that come from that. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.