and Angus King, I-Maine -- who first banded together to introduce the bill in 2013 -- said their new bill would be a modern version of the Banking Act of 1933
(Glass-Steagall) that protects American taxpayers, helps community banks and credit unions compete, and decreases the likelihood of future financial crises.
The new law would limit taxpayer bailouts of complex financial institutions and is a modern version of the Banking Act of 1933
The Glass-Steagall Act is part of the Banking Act of 1933
that separated commercial and investment banks and was repealed in 1999.
During the years 1933-35, the American response to the financial crisis was immediate and drastic; following an intentional freeze of the banking industry under President Franklin Delano Roosevelt, Congress enacted the Banking Act of 1933
and the Banking Act of 1935, with the purpose of transforming the banking industry.
King wrote that the 21st Century Glass-Steagall Act is "a modern version of the Banking Act of 1933
(Glass-Steagall) that reduces risk for the American taxpayer in the financial system and decreases the likelihood of future financial crises.
And Glass-Steagall is the Banking Act of 1933
, named for two Democratic lawmakers and signed by Democratic president Franklin D.
The banks that sold subprime mortgages and ALT-A loans with as many options to make loan payments as they could muster along with financial firms, shopped for a president to deregulate the Glass-Steagall Act, which was also known as the Banking Act of 1933
In response, Congress passed the Banking Act of 1933
, and included in it the Glass-Steagall Act, which separated commercial and investment banking by prohibiting affiliations.
A good deal of the destruction of the mortgage market was caused by the repeal of the Glass-Steagall Banking Act of 1933
by the Gramm-Leach-Bliley Act of 1999.
The Emergency Banking Act of 1933
, passed by Congress on March 9-combined with the Federal Reserve's commitment to supply unlimited amounts of currency to reopened banks--created de facto 100 percent deposit insurance.
Contemporary writers criticized the deposit insurance provisions of the Banking Act of 1933
, correctly pointing out the dangers of removing depositor-based market discipline from the banking system.
The Banking Act of 1933
, in the US, also known as the Glass-Steagall Act, created a distinction between commercial banks and investment banks.