Menu Search Account

LegiStorm

Get LegiStorm App Visit Product Demo Website
» Get LegiStorm App
» Get LegiStorm Pro Free Demo

Merchant Banking: Mixing Banking and Commerce Under the Gramm-Leach-Bliley Act (CRS Report for Congress)

Premium   Purchase PDF for $24.95 (6 pages)
add to cart or subscribe for unlimited access
Release Date Oct. 22, 2004
Report Number RS21134
Report Type Report
Authors William D. Jackson and Gary W. Shorter, Government and Finance Division
Source Agency Congressional Research Service
Summary:

A power Congress granted to banking (financial holding) companies in the Gramm-Leach-Bliley Act is merchant banking. It allows them to invest in nonfinancial businesses for a share of the profits. Other countries widely practice merchant banking. Its implementing agency, the Federal Reserve, has seen limited activity under its implementing regulation. Congress has paid attention to these investments because this application of the law, allowing merchant banking, has been controversial. The entire question of the separation of banking and commerce, of which merchant banking forms one part, has come under scrutiny in congressional hearings.