Glass-Steagal Act

(redirected from Glass-Steagall Act of 1933)

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 Most of the Glass-Steagal Act was repealed by the Gramm-Leach-Bliley Act in 1999.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 ?
Financial regulation does a lot of things, so as examples, let's take a simplified look at the Glass-Steagall Act of 1933, securities regulation, and prudential regulation.
Burke Dotson wanted to work to reinstate the Glass-Steagall Act of 1933 to separate commercial and investment banks.
This separation, of course, was the prime purpose of the Glass-Steagall Act of 1933, a piece of legislation that Weill and other bankers had watered down, with Alan Greenspan's support, before Weill helped engineer its official demise in 1999.
Resurrect legislation beneficial to the 99 percent, such as the Glass-Steagall Act of 1933, the 1999 repeal of which helped cause our financial meltdown, and the 1959 Fairness Doctrine, the 1980 repeal of which helped cause the proliferation of conservative hate radio and the creation of Fox News - entities that are major contributors to the "dumbing down" of society, as well as to the rejection of New Testament values by a hypocritical Christian electorate now enamored with a Nietzschean "survival of the fittest" gestalt.
At the heart of the political check was America's Glass-Steagall Act of 1933.
The Federal Reserve System, created in 1913, and the Federal Deposit Insurance Corporation, established by the Glass-Steagall Act of 1933, contributed to stability, but left intact the fundamental structural weakness inherent in an underregulated, fragmented banking system.
In 1999 two Republican politicians in America backed by all the Republicans in The Senate and House of Representatives ended the Glass-Steagall Act of 1933 that kept bankers from wrecking the world economy as they had in the late '20s.
The new law represents America's biggest financial regulatory reform since the Glass-Steagall Act of 1933, which erected a wall between commercial and investment banking based on the lessons of the Great Depression.
served on the House Banking Committee, where he played an active role in the federal saving-and-loan bailout, credit-reporting reform, the overhaul of The Glass-Steagall Act of 1933 and financial modernization.
The primary "New Deal regulations that had [supposedly] prevented banking crises for half a century" are embodied in the Glass-Steagall Act of 1933.
12) Part III examines the arguments made for and against Gramm-Leach-Bliley in the 1980s, when banks started to lobby strongly for the repeal of the Glass-Steagall Act of 1933.
The GLBA turned back some very restrictive regulatory policies that were enacted during the Great Depression, specifically portions of the Glass-Steagall Act of 1933, which prohibited a bank-holding company from owning other financial companies.