Which act allows banks to merge with and own insurance companies while ensuring customer account information remains private?

The Graham-Leach-Bliley Act is significant because it facilitates the consolidation of financial services by allowing banks to merge with and own insurance companies. This act, passed in 1999, aimed to modernize the financial industry by removing the barriers that previously separated banks, securities firms, and insurance companies.

A crucial aspect of the Graham-Leach-Bliley Act is its focus on the protection of consumer privacy. It mandates that financial institutions safeguard sensitive customer information and implement policies to disclose their privacy practices. By ensuring that customer account information remains private, the act addresses privacy concerns while promoting the integration of various financial sectors.

This regulatory framework is fundamental in maintaining customer trust in financial institutions as it sets standards for how personal data must be handled, thus allowing for both expanded business operations and a commitment to customer confidentiality.