Glass-Steagal Act


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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 Most of the Glass-Steagal Act was repealed by the Gramm-Leach-Bliley Act in 1999.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.
References in periodicals archive ?
He closed the meeting by expressing his concern and his opposition to a wave presently growing within the banking industry for the repeal of the Glass-Steagal Act of 1933 and the reduction of FDIC Insurance.
was prohibited by the federal Glass-Steagal Act, and many states limited banks' intrastate retail lending to a single city or country.
Bush, Dick Cheney and even the charming Bill Clinton, who, with his odd confederate Phil Gramm of Texas, promoted the legislation that repealed the Glass-Steagal Act.