Final answer:
The Gramm-Leach-Bliley Act gave the Federal Reserve regulatory responsibility over financial holding companies and led to the consolidation of different financial services by repealing parts of the Glass-Steagall Act.
Step-by-step explanation:
The Gramm-Leach-Bliley Act (GLBA), also known as the Financial Services Modernization Act of 1999, gave regulatory responsibility over financial holding companies to the Federal Reserve.
This act effectively repealed part of the Glass-Steagall Act of 1933 by allowing commercial banks, investment banks, securities firms, and insurance companies to consolidate. However, it also established the Federal Reserve as the primary regulator of financial holding companies.
The Gramm-Leach-Bliley Act gave regulatory responsibility over financial holding companies to the Federal Reserve. This act, which was signed into law in 1999, repealed some of the conflict of interest provisions of the previously enacted Glass-Steagall Banking Act.
It allowed commercial banking, investment banking, and insurance activities to be conducted under the same holding company.