Glass-Steagall Act (redirected from Glass Steagal Act)

Glass-Steagall Act

An Act passed by Congress in 1933, that prohibited commercial banks from collaborating with full-service brokerage firms or participating in investment banking activities.

Notes:

The Glass-Steagall Act was enacted during the Great Depression. It protected bank depositors from the additional risks associated with security transactions. The Act was dismantled in 1999. Consequently, the distinction between commercial banks and brokerage firms has blurred many banks own brokerage firms and provide investment services.

See also: Commercial Bank, Deposit, Depression, Investing Bank, Underwriting

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Glass-Steagall Act

1933 legislation prohibiting commercial banks to own, underwrite, or deal in corporate stock and corporate bonds.

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Glass-Steagall Act

A 1933 act that prohibited commercial banks from undertaking investment banking activities such as underwriting the securities of private corporations. The legislation was passed to keep banks from entering into nonfinancial businesses (for example, owning corporate stock) and more risky activities. The Glass-Steagall Act was repealed in 1999. Also called Banking Act of 1933.