Identify the action taken by OCC and the Federal Reserve in 1997, to expand the permitted activities of bank holding companies.
A)Repealed the Glass-Steagall barriers between commercial banking and investment banking.
B)Allowed commercial banks to acquire directly existing investment banks.
C)Allowed investment banks to offer banking products.
D)Allowed investment banks to offer deposit products.
E)All of the options.

Question

Quizplus · Accepted Answer

In 1997, the OCC and the Federal Reserve allowed commercial banks to acquire existing investment banks directly. This was known as the "one-bank holding company" policy and expanded the permitted activities of bank holding companies. The Glass-Steagall Act, which separated commercial banking and investment banking, was not fully repealed until 1999 with the passage of the Gramm-Leach-Bliley Act. Investment banks were not allowed to offer deposit products until they converted to bank holding companies during the 2008 financial crisis.

Identify the Action Taken by OCC and the Federal Reserve