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 Most of the Glass-Steagal Act was repealed by the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.