Identify the action taken by OCC and the Federal Reserve in 1997,to expand the permitted activities of bank holding companies.

Question

Quizplus · Accepted Answer

In 1997, the OCC and Federal Reserve issued new regulations that allowed commercial banks to acquire existing investment banks directly, thereby expanding the permitted activities of bank holding companies. The Glass-Steagall Act, which had previously separated commercial banking and investment banking, was not repealed until 1999. Option A is incorrect as Glass-Steagall was not repealed in 1997. Option C is incorrect because investment banks were already able to offer banking products, such as loans and mortgages. Option D is incorrect because investment banks were still not allowed to offer deposit products even after the expansion of permitted activities in 1997.

Identify the Action Taken by OCC and the Federal Reserve