Editing Gramm–Leach–Bliley Act (section)

==Remaining restrictions==
Crucial to the passing of this Act was an amendment made to the GLBA, stating that no merger may go ahead if any of the financial holding institutions, or affiliates thereof, received a "less than satisfactory {{sic}} rating at its most recent CRA exam", essentially meaning that any merger may only go ahead with the strict approval of the regulatory bodies responsible for the [[Community Reinvestment Act]] (CRA).<ref name="Community Reinvestment Act Amendments in the Gramm–Leach Act">[http://banking.senate.gov/conf/craamd.htm Community Reinvestment Act Amendments in the Gramm–Leach Act] {{webarchive|url=http://archive.wikiwix.com/cache/20110717005604/http://banking.senate.gov/conf/craamd.htm |date=2011-07-17 }}, additional text.</ref> This was an issue of hot contention, and the Clinton Administration stressed that it "would veto any legislation that would scale back minority-lending requirements."<ref name="Compromise over Community Reinvestment Act crucial to repeal of Glass-Steagall">{{cite web|url=http://partners.nytimes.com/library/financial/102399banks-congress.html|title=Agreement Reached on Overhaul of U.S. Financial System|website=partners.nytimes.com|access-date=4 May 2018}}</ref>

GLBA also did not remove the restrictions on banks placed by the [[Bank Holding Company Act of 1956]] which prevented financial institutions from owning non-financial corporations. It conversely prohibits corporations outside of the banking or finance industry from entering retail and/or commercial banking. Many assume [[Wal-Mart]]'s desire to convert its industrial bank to a commercial/retail bank ultimately drove the banking industry to back the GLBA restrictions.

Some restrictions remain to provide some amount of separation between the investment and commercial banking operations of a company. For example, [[General Securities Representative Exam|licensed]] bankers must have separate business cards, e.g., "Personal Banker, Wells Fargo Bank" and "Investment Consultant, Wells Fargo Private Client Services". Much of the debate about [[financial privacy]] is specifically centered around allowing or preventing the banking, brokerage, and insurances divisions of a company from working together.

In terms of [[compliance (regulation)|compliance]], the key rules under the Act include ''The Financial Privacy Rule'' which governs the collection and disclosure of customers' personal financial information by financial institutions. It also applies to companies, regardless of whether they are financial institutions, that receive such information. ''The Safeguards Rule'' requires all financial institutions to design, implement and maintain safeguards to protect customer information. The Safeguards Rule applies not only to financial institutions that collect information from their own customers, but also to financial institutions – such as credit reporting agencies, appraisers, and mortgage brokers – that receive customer information from other financial institutions.