The Glass-Steagall Act was passed by the U.S. Congress in as the Banking Act, which prohibited commercial banks from participating in. The case for reviving the Glass-Steagall Act has surprising support across the political spectrum. Here’s why we should listen. The Glass-Steagall Act effectively separated commercial banking from investment banking and created the Federal Deposit Insurance Corporation, among other.

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On the passage of S. An analysis of the investment banking activities of national banks”, Explorations in Economic History23 1: The law gave banks one year after the law was passed on June 16, to decide whether they would be a commercial bank or an investment bank.

Gramm–Leach–Bliley Act – Wikipedia

Archived from the original on July 8, Discount window Federal funds Federal funds rate Primary dealer. One exception to this rule was that commercial banks could underwrite government-issued bonds. Notice requirements may vary. Nobel Prize -winning economist Joseph Stiglitz has also argued that the Act helped to create the crisis.

When the Office of the Comptroller of the Currency ruled that interstate banks established under the Riegle-Neal Interstate Banking and Branching Efficiency Act of could use their home state’s usury law for all branches nationwide with minimal restrictions, [29] Arkansas-based banks were placed at a severe competitive disadvantage to Arkansas branches of interstate banks; this led to out-of-state takeovers of several Arkansas banks, including the sale of First Commercial Bank then Arkansas’ largest bank to Regions Financial Corporation in Archived from the original on 31 October Archived PDF from the original on All articles with dead external links Articles with dead external links from January Articles with permanently dead external links CS1 maint: In the s the Office of the Comptroller of the Currency issued aggressive interpretations of Glass—Steagall to permit national banks to engage in certain securities activities.


This is true, but hardly a sufficient criticism. Democrats voted —51 in favor, with 5 not voting. The Senate passed a version of the Glass bill that would have required commercial banks glass-steaga,l eliminate their securities affiliates.

Crisis Enabler Archived at the Wayback Machine. Senate PDFretrieved October 16, Starting in the early s, federal banking regulators’ interpretations of the Act permitted commercial banksand especially commercial bank affiliates, to engage in an expanding list and volume of securities activities.

Gramm–Leach–Bliley Act

Between and Senator Carter Glass D-VA introduced several versions of a bill known in each version as the Glass bill glaes-steagall regulate or prohibit the combination of commercial and investment banking and to establish other reforms except deposit insurance similar to the final provisions of the Banking Act.

Shull, Bernard; White, Lawrence J.

With the exception of commercial banks being allowed to underwrite government-issued bonds, commercial banks could only have ten percent of their income come from securities. Wikisource has original text related to this article: Indeed, we can think of a modern Glass-Steagall as something like a ban on mergers that create conglomerates.

The purpose is to fragment power. In May Steagall’s addition of allowing state chartered banks to receive federal deposit insurance and shortening the time in which banks needed glass-stteagall eliminate securities affiliates to one year was known as the driving force of what helped the Glass—Steagall act to be signed into law.


Glass–Steagall legislation – Wikipedia

A table with members’ full names, sortable by vote, state, region and party, may be found at S. For example, a well-written plan designed to meet GLB’s Safeguards Rule “develop, monitor, and test a program to secure the information” would likely include a section on training employees to recognize and deflect inquiries made under pretext.

Who Caused the Economic Crisis? In recent years, the idea of resurrecting the law has had surprising support across the political spectrum. United States federal banking legislation United States federal privacy legislation United States federal computing legislation in law th United States Congress Separation of investment and retail banking in economics.

May”Of Firewalls and Subsidiaries: James Inhofe R-Oklahoma did not vote. Prior to the enactment of the Act those activities were limited to those that were so closely related to banking to be considered incidental to it.

Cleveland and Huertaspp. The bill then moved to a joint conference committee to work out the differences between the Senate and House versions.

Credit union Federal savings association Federal savings bank National bank State bank.

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