💼 The Gramm-Leach-Bliley Act (GLBA), also known as the Financial Services Modernization Act of 1999, is a U.S. federal law that reshaped the financial industry by allowing commercial banks, investment banks, and insurance companies to consolidate and offer overlapping services.

🧩 Key Features of GLBA

• Repealed parts of the Glass-Steagall Act: Removed barriers that previously separated banking, securities, and insurance services
• Modernized financial services: Enabled financial institutions to diversify and compete more broadly
• Introduced privacy protections: Required institutions to explain how they share customer data and offer opt-out options

🔐 Privacy and Safeguards Rules

GLBA includes two major privacy-related components:

1. Privacy Rule: Requires financial institutions to provide clear privacy notices and allow customers to opt out of certain data sharing
2. Safeguards Rule: Mandates that institutions develop and maintain security programs to protect customer information

🏢 Who Must Comply?

Any company offering:

• Loans
• Financial or investment advice
• Insurance products

These organizations must disclose their data-sharing practices and protect sensitive consumer information.

🧠 Why It Matters

GLBA was a turning point in financial regulation—it not only opened the door for financial conglomerates like Citigroup but also laid the groundwork for stronger consumer data protections.