These powers are tailored to meet the economic needs of the individual states. The bill provides the strongest privacy protections ever for Americans. It requires financial institutions to clearly disclose privacy policies to their customers. The bill also requires that any bank considering sharing financial information with a third party to notify the customer. Americans are guaranteed the right to privacy through this legislation.
Banks benefit from the legislation's regulatory relief provisions, as well.
More than 80 percent of banks will receive a dramatic reduction of the regulatory burden from audits. Financial History Enzi said today's globalization of financial services, developments in technology and changes in the capital markets demand a change in the obsolete existing laws. Originally intended to protect the financial system by insulating commercial banking from other forms of risk, these laws now hamper the ability of financial institutions to diversify their products. The financial services modernization conference report must still be passed by the House, after which it will be sent to the president for his signature. The White House has indicated its support for the legislation.