In the United States, banks, insurance firms, and brokerage firms are prohibited from having significant financial interests in one another.

Question

Quizplus · Accepted Answer

This statement is no longer entirely true. As of July 2019, the Federal Reserve Board relaxed some of the regulations that prohibited banks from having significant financial interests in insurance companies. However, there are still regulations in place to prevent banks, insurance firms, and brokerage firms from having significant financial interests in one another to prevent conflicts of interest and protect consumers.

In the United States, Banks, Insurance Firms, and Brokerage Firms