Significant Legislation (3)
August 13, 2009 – 1:30 amFederal Deposit Insurance Corporation Improvement Act (FDICIA) of 1991
Amended FIRREA by mandating a least-cost resolution method and a prompt action approach to the problem of failing banks and ordered the creation of a risk-based insurance assessment. It established higher standards for financial institution safety and required the FDIC to declare insolvent any bank or thrift that failed to maintain equity capital to 2 percent of its assets.
Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 (IBBEA)
Effective 1997, permitted banks to acquire banks and merge across state lines in states that passed legislation permitting branching, provided they were adequately capitalized.
Gramm-Leach Bliley Act of 1999 (GLB)
Established the creation of new financial holding companies that are allowed to engage in underwriting, selling insurance and securities, commercial and merchant banking, developing real estate, and other “complementary activities.”
Electronic Signatures in Global and National Commerce Act of 2000
Established the legality of electronic or digital signatures in e-commerce transactions.
Source: www.federalreserve.org, “The Structure of the Federal Reserve System,” March 27, 2002.
Taken From : Essentials of Managing Corporate Cash
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