[20041022]RS21134_商户银行业务：《格拉姆-里奇-布莱利法案》下的银行和商业混业经营.pdf

1 P.L. 106-102, 113 Stat. 1338 1481, Nov. 12, 1999.2 Sections 20, 21, 26, and 32 of The Banking Act of 1933, P.L. 73-66, June 16, 1933. 3 12 U.S.C. 1843(k). Order Code RS21134Updated October 22, 2004Merchant Banking: Mixing Banking andCommerce Under the Gramm-Leach-Bliley ActGary W. ShorterSpecialist in Business and Government RelationsGovernment and Finance DivisionSummaryA power Congress granted to banking (“financial holding”) companies in theGramm-Leach-Bliley Act is merchant banking. It allows them to invest in nonfinancialbusinesses for a share of the profits. Other countries widely practice merchant banking.Its implementing agency, the Federal Reserve, has seen limited activity under itsimplementing regulation. Congress has paid attention to these investments because thisapplication of the law, allowing merchant banking, has been controversial. The entirequestion of the separation of banking and commerce, of which merchant banking formsone part, has come under scrutiny in congressional hearings. This report will be updatedas developments warrant. Authorization The Gramm-Leach-Bliley Act (GLBA)1 eased affiliations among banks, securitiesfirms, and insurance companies, under a