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A)Repealed the Glass-Steagall barriers between commercial banking and investment banking.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 above.

Question

Quizplus · Accepted Answer

The OCC and the Federal Reserve allowed commercial banks to acquire existing investment banks directly, expanding the permitted activities of bank holding companies. Glass-Steagall barriers between commercial banking and investment banking were not fully repealed until 1999. Investment banks were also not allowed to offer deposit products. Therefore, options A, C, D, and E are incorrect.

Identify the Action Taken by OCC and the Federal Reserve