Which of the following was a consequence of passage of the Financial Modernization Act (Gramm-Leach-Bliley)?
A) Formation of insurers was made easier because capital requirements were reduced.
B) It became easier for insurers to conduct business as they were no longer required to be licensed in each state where they operate, but only in the state where they are domiciled.
C) Insurers were required to prepare financial statements using generally accepted accounting principles (GAAP) instead of using statutory accounting.
D) Depression-era barriers between underwriting risk, depository functions, and securities underwriting were eliminated.

Question

Quizplus · Accepted Answer

The Financial Modernization Act, also known as Gramm-Leach-Bliley, eliminated the Depression-era barriers between banking and securities industries, allowing companies to engage in multiple financial services, including underwriting risk, depository functions, and securities underwriting. This resulted in the creation of financial conglomerates that offered a range of financial services to consumers, but also increased the potential for conflicts of interest and systemic risks in the financial system.

Which of the Following Was a Consequence of Passage of the Financial