What does the Gramm-Leach-Bliley Act primarily address?

The Gramm-Leach-Bliley Act (GLBA) primarily addresses the consolidation of financial organizations. Enacted in 1999, this legislation effectively overturned the Glass-Steagall Act's separation of commercial banking, investment banking, and insurance services, allowing these entities to merge and offer a broader range of financial services under one roof. The primary aim was to enhance competition and provide consumers with more choices in financial services.

This consolidation impacts how financial institutions operate and interact with consumers, including the sharing of financial information among bank, securities, and insurance companies. It also includes provisions for safeguarding personal financial information, ensuring that consumers are notified about their privacy rights and how their information may be used.

The other options—such as the regulation of insurance agents, the handling of claims, and the establishment of credit reporting agencies—are not the main focus of the Gramm-Leach-Bliley Act. While other regulations do govern these areas, GLBA specifically centers on the integration and operational practices of diverse financial organizations.