The recent Financial Services Modernization (Gramm-Leach-Bliley) Act, passed in the U.S. in November 1999, now allows banks, thrifts, insurance companies and securities firms to enter each other's backyard through a centuries-old financial structure, the holding company. In the holding company, different affiliated firms offer different groups of services but all are owned by one controlling company at the top of the organization. A model of this kind is called the "Financial Holding Company Model."

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The Financial Services Modernization Act, also known as the Gramm-Leach-Bliley Act, passed in 1999, indeed allows financial institutions such as banks, insurance companies, and securities firms to merge and offer each other's services through the formation of financial holding companies. This structure permits these institutions to operate under one umbrella organization, thereby enabling a more integrated offering of financial services.

The Recent Financial Services Modernization (Gramm-Leach-Bliley) Act, Passed in the U.S