Gramm-Leach-Bliley Act

With all due respect to noted astrophysicist Stephen Hawking, this blog post will attempt to explain the bank privacy universe in a tiny package. Many tend to think “bank privacy” began with the Gramm-Leach-Bliley Act (“GLB” and technically The Financial Services Modernization Act of 1999). But this perspective misstates the origin of bank privacy and understates its breadth and depth.

Rather bank privacy is genetically coded into the customer relationship and has been since the beginning. Perhaps “privacy” is even the wrong word as “confidential” seems more apt. Protecting bank customer confidences has long been recognized on both state and federal levels, at common law and in numerous statutes pre-dating GLB. For perspective, in 1995 I revised my bank’s deposit agreement and made extensive reference to customer confidentiality and the bank’s information sharing practices, embodying almost all the concepts later enshrined in GLB.
Continue Reading A Brief History of Bank Privacy