What is the Glass-Steagall Act?

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[Staff reporters]

According to NEIL IRWIN; it is the 82-Year-Old Banking Law That Stirred a Debate!

What is the Glass-Steagall Act [Banking Act of 1933]?

When people talk about banking, they are talking about two broad classes of activities.

Commercial banking is what happens at your neighborhood branch: You deposit money in a checking or savings account, and the bank uses those deposits to make loans to consumers or small businesses.

Investment banking refers to the kind of banking activity more common on Wall Street, like helping large companies issue stock or bonds in order to fund themselves, and trading securities in hope of making a profit.

The government’s response was the Banking Act of 1933, commonly known as the Glass-Steagall Act (for the bill’s sponsors, Senator Carter Glass of Virginia and Representative Henry Steagall of Alabama), which required that commercial banking and securities activities be separated, not to take place within the same financial institution.

More: The Three Types of Banks

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Bank

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More:

Assessment

So, here is a look at why the Democratic presidential candidates Bernie Sanders and Martin O’Malley want to reinstate it.

Conclusion

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OUR OTHER PRINT BOOKS AND RELATED INFORMATION SOURCES:

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Comprehensive Financial Planning Strategies for Doctors and Advisors: Best Practices from Leading Consultants and Certified Medical Planners(TM)

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One Response

  1. GSA

    The act was repealed in 1999 or so by Bill Clinton. Bring it back; now!

    Stan

    Like

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