In 1998, Travelers and Citicorp combined to form Citigroup in anticipation of the repeal of Glass-Steagall and the enactment of more liberal legislation. In November 1999, the Congress passed the Gramm-Leach-Bliley Act, which in fact allowed firms to combine banking, insurance, and securities activities within a financial holding company, or FHC.
In the two years since the Gramm-Leach-Bliley Act went into effect, nearly 600 financial holding companies have been formed. Although the act was initially perceived by some to benefit primarily large institutions, approximately three-quarters of the current domestic FHCs have assets of less than $ million, and about 45 percent of these have assets of less than $ million.