Title

The Market’S Assessment Of The Financial Services Modernization Act Of 1999

Keywords

Bank regulation; Financial modernization; Glass-Steagall; Gramm-Leach-Bliley Act; Wealth effects

Abstract

We examine the impact of the events leading up to and including the passage of the Financial Services Modernization Act (FSMA) of 1999 on the stock returns of banks, brokerage firms, and insurance companies. We find that the impact is positive for all institutions. Bank gains are positively related to size and capitalization. Brokerage firms gain regardless of size, but the gains are inversely related to capitalization and insurance companies gain regardless of size or capital position. The strong positive reaction suggests that the market expects the institutions to benefit from the new opportunities created by the FSMA’s passage. © 2001 Blackwell Publishing Ltd.

Publication Date

1-1-2001

Publication Title

Financial Review

Volume

36

Issue

4

Number of Pages

119-138

Document Type

Article

Personal Identifier

scopus

DOI Link

https://doi.org/10.1111/j.1540-6288.2001.tb00032.x

Socpus ID

4444318299 (Scopus)

Source API URL

https://api.elsevier.com/content/abstract/scopus_id/4444318299

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