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 In 1999, the provisions of the Glass-Steagall Act that segregated commercial and investment banking were effectively repealed with the passage of the Gramm-Leach-Bliley Act.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: diluted share, phantom income, labor relations, liquidity ratio, APR, per diem, ex-dividend date, ex-dividend, inflation, FICO score, option premium, average price per share, cancelled check, VIX, deferred revenue, covered put, class C shares, quality assurance, irrevocable trust, command economy, in escrow, wholly-owned subsidiary, retained earnings, debt service coverage, balance sheet, real GDP, required rate of return, 1031 exchange, minority interest, dividends payable, EBITDA, deferred tax, risk management, Key Rate Duration, 144a, annual return, implied volatility, limit order, LIBOR, 1035 exchange, margin rate, stock split, open position, 401a, reverse mortgage, current ratio, Zero Cost Collar, FTSE, stock market close


Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
Investor Glossary Index >>> # 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 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
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2014 Investor Glossary - All rights reserved - Terms of Use