Governor Gray Davis has signed into law some of the most sweeping financial privacy legislation in the country. The new law gives California consumers the right to block banks, insurance companies and other financial institutions from sharing much of their personal information. Governor Davis signed the legislation during a ceremony at the Pacific Stock Exchange Wednesday afternoon. Davis predicts that other states will follow California´s lead and adopt similar protections for consumers.

The California Financial Information Privacy Act has faced opposition from business groups and financial firms. After four years of wrangling, the Legislature approved it last week — but only after supporters gathered enough signatures to put an even stricter initiative on the March ballot.