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 The bill was effectively repealed by the Gramm-Leach-Bliley Act, November 12, 1999.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 Most of the Glass-Steagal Act was repealed by the Gramm-Leach-Bliley Act in 1999.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 The Glass-Steagall Act was repealed in 1999.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 ?
Even when I look at the Senate bill," the 21st Century Glass-Steagall Act introduced in early April by Sens.
com/the-2016-republican-party-platform/) platform , unveiled at the Republican National Convention in July, reflected this image in at least one respect, calling for "reinstating the Glass-Steagall Act of 1933 which prohibits commercial banks from engaging in high-risk investment.
That damn Glass-Steagall Act is costing us a fortune.
A strong Glass-Steagall Act could have made the last recession weaker, or even prevented it.
Elizabeth Warren (D-Massachusetts) last July 7 when she and other co-sponsors reintroduced the 21st Century Glass-Steagall Act.
The 21st Century Glass-Steagall Act will rebuild the wall between commercial and investment banking and make our financial system more stable and secure.
Elizabeth Warren's proposed 2014 financial legislation, is that the 1999 "repeal" of the 1933 Glass-Steagall Act removed the restrictions that kept investment banks from using commercial bank deposits to speculate in an unregulated marketplace.
In fact, the main advantages of the original Glass-Steagall Act may have been more sociological than technical, changing the business culture and environment in subtle ways.
Finally, in 1999 the Glass-Steagall Act was repealed and the power of banks considerably reinforced.
Investment banking and commercial banking were for many years comfortably separated by the Glass-Steagall Act of 1932.
Weill was an advocateof the 1999 repeal of the Glass-Steagall Act, which separated commercial and investment banks, a repeal that allowed him to build Citigroup.
Randall Kroszner and Raghuram Rajan ("Is the Glass-Steagall Act Justified," American Economic Review, Vol.