3. Regulation of securities firms Which of the following permits a financial holding company to create a financial conglomerate by allowing it to own commercial banks, securities firms, and insurance companies as subsidiaries? O The Financial Services Modernization Act The Bank Holding Company Act of 1956 The Glass-Steagall Act Regulation Fair Disclosure In the early 2000s, the process by which securities analysts rated stocks was widely criticized. Their pay was typically tied to the new business they brought to the securities firm, and they knew firms in need of advisory or underwriting services would likely hire the securities firm that gave their stock the highest valuation. Consequently, they had motives to inflate their ratings of a firm's stock, which would cause investors relying on these ratings to be misinformed. In 2002, which of the following were rules implemented by the SEC in an attempt to prevent analysts from inflating stock ratings? Check all that apply. An analyst's pay can no longer be directly derived from the amount of business they bring to the securities firm. Analysts from a securities firm that underwrites an IPO can no longer promote the stock within the first two months of the IPO. Analysts can no longer be supervised by their securities firm's investment banking department. Analysts must now provide detailed steps of how they create their ratings to other securities firms in order to assess the accuracy of the ratings