Which legislation allowed financial institutions to sell various competing products, like insurance and stocks?

The Financial Services Modernization Act of 1999 is recognized for removing the barriers that previously separated different types of financial institutions, such as banks, securities firms, and insurance companies. This pivotal legislation effectively allowed these institutions to offer a diverse array of financial products, including insurance, stocks, and other investment vehicles, under one roof. By allowing banks to engage in investment activities and insurance, it fostered increased competition and provided consumers with more choices and convenience when managing their financial needs.

The act aimed to modernize the financial services sector, ensuring that institutions could adapt to changing market conditions and consumer demands. This transformation led to the creation of large financial service conglomerates that could serve clients with a comprehensive suite of products, reinforcing the interconnected nature of the financial services industry. The significant change brought about by this legislation was a clear move towards integrating and diversifying financial services for consumers.