Glass-Steagall Act

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Glass-Steagall Act

1933 legislation prohibiting commercial banks to own, underwrite, or deal in corporate stock and corporate bonds. The bill was effectively repealed by the Gramm-Leach-Bliley Act, November 12, 1999.

Glass-Steagal Act

Legislation in the United States, enacted in 1933, intended to restore confidence in the banking system. Among its most important provisions was the creation the FDIC, which provided insurance on bank deposits up to a certain amount. The act also prohibited bank holding companies from owning brokerages or certain securities. This provision was designed to prevent banks from engaging in most investment activities and thereby to reduce the risk they carried. Most of the Glass-Steagal Act was repealed by the Gramm-Leach-Bliley Act in 1999. It is formally called the Banking Act of 1933.

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 The Glass-Steagall Act was repealed in 1999.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.
References in periodicals archive ?
NLC supports repeal of the Glass Steagall Act proposed in both versions of H.
Ever since the 1999 repeal of the Glass Steagall Act of 1933, which separated the bank's consumer operations from those of investment banks, banks have lost sight of the protective and trustworthy institutions they once represented," states Dr.
Bonnick examines The Glass Steagall Act and its successor The Gramm Leach Bliley Act.
The former head of short term trading for Toronto Dominion Securities, LLC, he developed and managed an operations group to respond to the requirements of the Glass Steagall Act, as well as handling risk management, managing trading revenue investment, balance sheet management Prior to joining TD, he managed Swiss Bank's Finance Desk, which he grew to $16 billion in investments.
According to Hank Seale, CEO of Q UP, An S1 Company, "With the repeal of the Glass Steagall Act, bankers now have an opportunity to expand their product offerings and capture non-traditional revenue from their customers.
Responding to the repeal of the Glass Steagall act, a volatile market and changing consumer demands, online brokerages around the globe are adopting a convergence strategy that includes adding banking services to their product portfolio, says a new report from Meridien Research.
The measure would repeal the Glass Steagall Act to allow commercial banks to affiliate with investment banks (securities firms).
Cohen explained that even though the Glass Steagall Act is still on, the industry is striving to offer one-stop shopping, with commercial banks becoming involved in investment banking and with investment banks granting credits.