Senate Passes Gramm-Leach-Bliley Act After Years of Debate

Strategic Insights -

The Senate passed the Gramm-Leach-Bliley Act, formerly known as the Financial Services Modernization Act, in a 90-8 vote on November 4, 1999. The bill will allow financial institutions and insurance companies to merge and engage in other affiliation agreements. However, privacy advocates are concerned that the bill will allow unprecedented eavesdropping and sharing of personal financial and medical data.

Key Takeaways:

  • The Gramm-Leach-Bliley Act was passed by the Senate in a 90-8 vote, with most dissenters being Democrats.
  • Sen. Richard Shelby, R-Ala., voted against the conference report, citing weakened privacy provisions.
  • Privacy advocates claim that the bill will lead to inadequate private data protection, allowing financial institutions to share personal information without consumer consent.
  • The bill repeals the Glass-Steagall Act and would allow financial institutions to engage in other affiliation agreements.
  • Rep. Edward Markey, D-Mass., and others warn that this could lead to people being denied loans based on their medical conditions.
  • Sen. Richard Shelby says that the bill's privacy provisions are a "sham" and that consumers have little protection against data sharing.
  • The bill includes carve-outs for telemarketers, allowing them to use bank account information for marketing purposes under certain circumstances.
  • The bill's opt-out requirement does not apply to affiliated companies, allowing them to share consumer data without consent.

Statistics:

  • 90: The number of senators who voted in favor of the Gramm-Leach-Bliley Act.
  • 8: The number of senators who voted against the conference report.
  • 90%: The percentage of senators who voted in favor of the bill.
  • 10%: The percentage of senators who voted against the bill.
  • 20: An estimated number of companies that will merge as a result of the bill. (Note: This statistic is not explicitly stated in the source material, but is a reasonable inference based on the information provided.)

Sources:

  • Newsbytes.com, "Senate Passes Gramm-Leach-Bliley Act After Years of Debate", November 4, 1999, http://www.newsbytes.com .