Definition of Firewall:
Building: Wall built to prevent or slow down the spread of flames from one part of a building to another.
Banking: Laws that obligate a bank to completely segregate its securities underwriting business from its deposit taking and loan making activities. These legal firewalls aim to prevent banks from using the depositors funds in speculative ventures, and thus comply with the statutes such as US Glass-Steagall Act or 1933. Also called Chinese wall, or ethical wall.
A firewall refers to the strict separation of banking and brokerage activities in full-service banks and between depository and brokerage institutions. Under the Glass-Steagall Act of 1933, a distinct line was drawn between the banking and the investment industry, prohibiting a financial institution (FI) to operate as both a bank and a brokerage.
A firewall is a legal barrier preventing the transference of inside information and the performance of financial transactions between commercial and investment banks. Restrictions placed on collaborations between banks and brokerage firms under the Glass-Steagall Act of 1933 acted as a form of firewall.
A wall or partition designed to inhibit or prevent the spread of fire.
Computer security: Hardware/software device that acts like a filter or gatekeeper to stop unauthorized users from accessing a firms internal or sensitive data or applications. Computer firewalls achieve this segregation by preventing direct connection to the computers inside the firewalls by those outside of it. All requested information or services are relayed through the firewall instead of being delivered direct to the user.
How to use Firewall in a sentence?
- A handful of politicians and economists claim this deregulation contributed to the 2008 financial crisis and have since been calling for the Glass-Steagall Act to be reenacted.
- During the Great Depression, policymakers sought to weed out the conflict of interest that arose when banks invested in securities with their account-holders' assets.
- In 1999, the Gramm-Leach-Bliley Act (GLBA) was introduced, enabling commercial banks to once again engage in investment banking and securities trading.
- In a building, a firewall prevents a fire from quickly burning through, giving firefighter a chance to douse flames, and occupants a chance to find safety.
- A firewall refers to stipulations in the Glass-Steagall Act of 1933 that mandate strict separation of banking and brokerage activities in full-service banks and between depository and brokerage institutions. .
Meaning of Firewall & Firewall Definition