What is the primary purpose of the Gramm-Leach-Bliley Act?

The primary purpose of the Gramm-Leach-Bliley Act (GLBA) is to ensure customer data privacy. Enacted in 1999, the GLBA aims to protect consumers' personal financial information held by financial institutions. It requires these institutions to implement privacy policies and practices that safeguard customer information, providing customers the right to opt out of certain data sharing with third parties.

This act has a significant impact on how financial institutions handle sensitive data, mandating transparency about their information-sharing practices. The emphasis on data privacy reflects an understanding of the risks associated with sharing personal information in an increasingly digital landscape, making it crucial for consumers to have control over their data.

The other options do not align with the primary focus of the GLBA. While credit reporting, bank and insurance company mergers, and housing assistance are important aspects of the financial industry and regulation, they are not the core objective of the Gramm-Leach-Bliley Act. This distinction highlights the Act's foundational role in promoting consumer trust and accountability among financial institutions in the handling of personal information.