Glass-Steagall Act was also part of
Banking Act of 1933 which separated Wall Street from Main Street by offering protection to people's savings in commercial banks by prohibiting bankers from using depositors' money in stocks.
was born out of the
Banking Act of 1933 to reduce the economic-disruptions caused by those failures.
The
Banking Act of 1933, however, was particularly important.
(5) Named after Senator Glass and Congressman Steagall, the
Banking Act of 1933 banned "commercial banks from underwriting securities, forcing banks to choose between being a simple lender or an underwriter (brokerage)." The Long Demise of Glass-Steagall, PUBLIC BROADCASTING SERVICE, http://www.pbs.org/wgbh/pages/frontline/shows/wallstreet /weill/demise.html (last visited Sep.
The new law would limit taxpayer bailouts of complex financial institutions and is a modern version of the
Banking Act of 1933. It will look to separate traditional banks' insured deposits from riskier financial institutions that offer services such as investment banking, insurance, swap dealings, and hedge fund and private equity activities.
This set in train a series of measures to curb capitalist interests--for example, the Glass-Steagall
Banking Act of 1933, which prevented commercial banks from acting as investment banks.
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Banking Act of 1933 that separated commercial and investment banks and was repealed in 1999.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.
And Glass-Steagall is the
Banking Act of 1933, named for two Democratic lawmakers and signed by Democratic president Franklin D.
(15) Furthermore, the
Banking Act of 1933 (16) ("Glass-Steagall Act") was enacted to reform banking control issues and established the Federal Deposit Insurance Corporation ("FDIC").