What was a significant limitation of the Glass-Steagall Act that the Graham-Leach-Bliley Act aimed to address?

The Graham-Leach-Bliley Act was primarily aimed at addressing the significant limitation imposed by the Glass-Steagall Act, which was the prohibition of affiliations between commercial and investment banks. The Glass-Steagall Act, enacted during the Great Depression, enforced a separation of commercial banking from investment banking activities to prevent conflicts of interest and protect consumers. However, this separation became increasingly seen as a barrier to financial innovation and competition in the modern banking landscape.

The Graham-Leach-Bliley Act, passed in 1999, effectively repealed the provisions of the Glass-Steagall Act that restricted these affiliations, allowing financial institutions to offer a wide range of services including commercial banking, securities trading, and insurance under one corporate umbrella. This change aimed to enhance the efficiency of financial services, expand consumer choices, and foster competition among financial institutions in a rapidly evolving market.

The other options presented do not capture the primary motivation behind the Graham-Leach-Bliley Act. While limiting the scope of financial services, restricting international banking operations, and imposing high compliance costs are all relevant considerations in the broader context of financial regulation, they were not the focal points that Graham-Leach-Bliley sought to reform. The most significant change was indeed the elimination of barriers between commercial and investment