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 Most of the Glass-Steagal Act was repealed by the Gramm-Leach-Bliley Act in 1999.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 ?
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.
The legislative response to that crisis included the Securities Act of 1933, the Securities Exchange Act of 1934 and the Glass-Steagall Act of 1933, plus volumes of new regulations.
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.
After the repeal in 1999 of the Glass-Steagall Act of 1933, large banking institutions were no longer barred from trading stocks, bonds, and other investments.
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.
22) which repealed parts of the Glass-Steagall Act of 1933 which had prohibited non-insurance companies from offering insurance contracts.
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.
Accordingly, this empirical note investigates factors influencing the bank failure rate over the period 1970 through 2008, with emphasis on a major banking statute, namely, the Financial Services Modernization Act of 1999, also known as the Gramm-Leach-Bliley Act (GLBA), a statute that essentially repealed the Glass-Steagall Act of 1933.
The repealing of Glass-Steagall Act of 1933 legislatively sponsored by Carter Glass and Henry B.