Origins of the Financial Services Industry

Jerry Jacobs of Miami, FL has worked since his Florida State University graduation in the financial services industry.  Today, the phrase ‘financial services’ has a widely known and understood meaning.  Jerry Jacobs works to provide information, guidance and professional advice to consumers who wish to explore effective retirement plans, savings plans, creating pension and profit sharing architecture, and learning about investment opportunities in stocks, bonds, securities, mutual funds and annuities, among other options.

However, until recently in the United States, the profession of financial services professional was unknown.  As a result of a range of court cases and public concern about breaches of the financial privacy of private citizens, the Gramm-Leach-Bliley Act of 1999 was written into law.  The origins of Gramm-Leach-Bliley were in the Great Depression, when widespread failures in the finance industry led Congress to prohibit banks on a national and state level from any affiliation with securities firms; i.e., the Glass-Steagall Act.  23 years later, Congress expanded these prohibitions to prohibit banks from controlling companies not concerned with banking, and 26 years after that statutory prohibition, Congress amended the Bank Holding Act to further stop insurance agency activities by banks.

Many of these prohibitions were changed in 1999 by the Gramm-Leach-Bliley Act, which repealed sections of these acts and allowed banks to engage in a wide range of financial services.  The GLBA removed many previous obstructions to banks engaging in financial services, and paved the way for professionals like Jerry Jacobs of Miami, FL to offer service in a wide range of financial endeavors.