Glass Steagall Act

passed in 1933

Glass Steagall Act

1. It was intended to help failing banks during the great depression.

2. Intended to prohibit commercial banks from participating in the investment banking business.

3. It fell under the reform program of Roosevelt's New Deal after the banking crisis was resolved, Roosevelt encouraged Americans to redeposit their money in the new bank.

4. We think it is very successful because the act forced a separation of commercial and investment banks by preventing commercial banks from underwriting securities, with the exception of U.S. treasury and federal agency securities

5. This program adds to our understanding with the reasons given for what the act did, there was great reason for it.

6. Yes, the Glass Steagall Act does still exist today its very much the same, not much was changed although did create a organization called FDIC (Federal Deposit Insurance Corporation).

Glass-Steagall Act of 1933 explained by Max Keiser & William Black & Webster Tarpley

Glass Steagall Act Video explantion

In this Glass Steagall Act video they said there was a conflict of between the commercial banking side and the investment banking side, which is taking a ownership position.

To end conflict they have to separate investment and commercial banks.