Investor Glossary-glass-steagall actInvestor Glossary-glass-steagall actInvestor Glossary-glass-steagall actInvestor Glossary-glass-steagall actInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Glass-Steagall Act

The HTML to link to this page
 

The Glass-Steagall Act is a landmark bill in Federal banking and securities law. Passed in 1933, in the middle of the Great Depression, the Glass-Steagall Act was aimed at restoring confidence in the banking system. Notably, the Glass-Steagall Act established the Federal Deposit Insurance Corporation, which insures customer deposits. But the Glass-Steagall Act is probably better known for prohibiting banks from participating in both commercial banking and investment banking activities. Specifically, under the Glass-Steagall Act, banks could not both accept deposits and underwrite securities. Moreover, the Glass-Steagall Act provided that commercial banks could receive no more than 10% of their income from securities markets. Under the Glass-Steagall Act, financial institutions were given one year to decide if they would become commercial or investment banks. Whether these provisions of the Glass-Steagall Act made good economic sense or were an overreaction to the Crash of 1929 remain topics of debate. In 1999, the provisions of the Glass-Steagall Act that segregated commercial and investment banking were effectively repealed with the passage of the Gramm-Leach-Bliley Act.



Rate this Glass-Steagall Act definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: average price per share, quality assurance, 144a, VIX, limit order, inflation, labor relations, reverse mortgage, in escrow, diluted share, ex-dividend, wholly-owned subsidiary, APR, deferred tax, FTSE, 1031 exchange, ex-dividend date, per diem, open position, debt service coverage, retained earnings, margin rate, Zero Cost Collar, balance sheet, liquidity ratio, implied volatility, required rate of return, irrevocable trust, 401a, dividends payable, option premium, stock split, real GDP, Key Rate Duration, phantom income, FICO score, annual return, stock market close, 1035 exchange, cancelled check, command economy, EBITDA, deferred revenue, covered put, class C shares, current ratio, LIBOR, risk management, minority interest


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2015 Investor Glossary - All rights reserved - Terms of Use