The Banking Act of 1933, commonly known as the Glass-Steagall Act after its sponsors, Senator Carter Glass and Representative Henry Steagall, is a United States federal law enacted in response to the wave of bank failures that followed the 1929 stock market crash. It separated commercial banking from investment banking, barring firms that took deposits from also underwriting or dealing in securities, in order to prevent the kind of speculative risk-taking blamed for the crisis. The act also established the Federal Deposit Insurance Corporation to insure bank deposits and restore public confidence in the banking system. Its core provisions separating commercial and investment banking were gradually eroded through the late twentieth century and were formally repealed by the Gramm-Leach-Bliley Act of 1999, though the FDIC deposit insurance it created remains in force.
Facts
Enacted Year Enacted Date Jurisdiction Enacted By73rd United States Congress 1 Official CitationPub. L. 73-66; 48 Stat. 162 (1933) 1 Legal StatusPartially repealed; its Glass-Steagall provisions separating commercial and investment banking were repealed by the Gramm-Leach-Bliley Act of 1999. 1 Legal Status
Legal Status (category) Connections
Associated With
Dodd-Frank is the major post-crisis reform of the financial regulatory structure that began with the Banking Act of 1933.
The Gramm-Leach-Bliley Act repealed parts of the Banking Act of 1933 that separated commercial and investment banking.
Both belong to the 1933 and 1934 New Deal financial reforms.
The Volcker Rule is often compared with the separation of commercial and investment banking under the Banking Act of 1933.
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Sources
1. Banking Act of 1933 (Wikipedia)
Wikimedia FoundationIntroduction
L. 73-66, 48 Stat. 162, enacted June 16, 1933) was a statute enacted by the United States Congress that established the Federal Deposit Insurance Corporation (FDIC) and imposed various other banking reforms.
Infobox, Effective date field
June 16, 1933
Infobox, Enacted by field
the 73rd United States Congress
Glass-Steagall Legislation section
the 1999 Gramm-Leach-Bliley Act (GLBA), which repealed the two provisions restricting affiliations between banks and securities firms.
In Group: United States Trade, Finance and Land Statutes, Introduction, sentence 1
The Banking Act of 1933 (Pub. L. 73-66, 48 Stat. 162, enacted June 16, 1933) was a statute enacted by the United States Congress that established the Federal Deposit Insurance Corporation (FDIC) and imposed various other banking reforms.
View the Source Wikidata: Banking Act of 1933
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