Financial Services Modernization Act of 1999
Financial services modernizationn act of 1999 is an act of the US congress which relaxes the restrictions on banks combining commercial banking services with insurance and securities underwriting. The Financial services modernization act of 1999 now allows banks, investment or financial services and insurance companies to market each other's products. These restrictions were imposed by the Glass-Steagall Act and the Bank Holding Company Act of 1956 in response to limiting the speculation of commercial banks in the capital markets which generally involves and risks consumer deposits. The financial services modernization act of 1999 is created in response to an expansionary monetary stance by the US government.