Final answer:
The Glass-Steagall Act's restrictive provisions, separating banks and securities firms, were repealed by the Gramm-Leach-Bliley Act in 1999. The correct answer is option d.
Step-by-step explanation:
The legislation that repealed the restriction on banks affiliating with securities firms under the Glass-Steagall Act is the Gramm-Leach-Bliley Act. The Glass-Steagall Act, initially part of the Banking Act of 1933, imposed regulations to maintain the separation of commercial banking and investment banking. This separation aimed to reduce the risks associated with banks engaging in speculative activities with depositor's funds. The introduction of the FDIC under the same act helped restore trust in the banking system by insuring deposits.
Over time, changes in the financial industry and regulatory environment led to a shift in perspective, culminating in the repeal of key provisions of Glass-Steagall by the Gramm-Leach-Bliley Act in 1999, effectively allowing banks, securities firms, and insurance companies to consolidate once again and offer a range of financial services.
The Banking Act of 1935 further strengthened the Federal Reserve System, which, together with the establishment of the SEC and other regulatory measures, helped shore up confidence in the financial system. It wasn’t until much later, with the backdrop of the early 21st-century accounting scandals, that the Sarbanes-Oxley Act was introduced, targeting corporate fraud and improving financial disclosures.