OUT OF MIND
Would you like to react to this message? Create an account in a few clicks or log in to continue.
Latest topics
» Is it possible to apply positive + in favor Newton III Motion Law as a dynamic system in a motor engine
 Understanding the Glass-Steagall Act EmptySat Mar 23, 2024 11:33 pm by globalturbo

» Meta 1 Coin Scam Update - Robert Dunlop Arrested
 Understanding the Glass-Steagall Act EmptySat Mar 23, 2024 12:14 am by RamblerNash

» As We Navigate Debs Passing
 Understanding the Glass-Steagall Act EmptyMon Jan 08, 2024 6:18 pm by Ponee

» 10/7 — Much More Dangerous & Diabolical Than Anyone Knows
 Understanding the Glass-Steagall Act EmptyThu Nov 02, 2023 8:30 pm by KennyL

» Sundays and Deb.....
 Understanding the Glass-Steagall Act EmptySun Oct 01, 2023 9:11 pm by NanneeRose

» African Official Exposes Bill Gates’ Depopulation Agenda: ‘My Country Is Not Your Laboratory’
 Understanding the Glass-Steagall Act EmptyThu Sep 21, 2023 4:39 am by NanneeRose

» DEBS HEALTH
 Understanding the Glass-Steagall Act EmptySun Sep 03, 2023 10:23 am by ANENRO

» Attorney Reveals the “Exculpatory” Evidence Jack Smith Possesses that Exonerates President Trump
 Understanding the Glass-Steagall Act EmptyTue Aug 29, 2023 10:48 am by ANENRO

» Update From Site Owner to Members & Guests
 Understanding the Glass-Steagall Act EmptyTue Aug 29, 2023 10:47 am by ANENRO

» New global internet censorship began today
 Understanding the Glass-Steagall Act EmptyMon Aug 21, 2023 9:25 am by NanneeRose

» Alienated from reality
 Understanding the Glass-Steagall Act EmptyMon Aug 07, 2023 4:29 pm by PurpleSkyz

» Why does Russia now believe that Covid-19 was a US-created bioweapon?
 Understanding the Glass-Steagall Act EmptyMon Aug 07, 2023 4:27 pm by PurpleSkyz

»  Man reports history of interaction with seemingly intelligent orbs
 Understanding the Glass-Steagall Act EmptyMon Aug 07, 2023 3:34 pm by PurpleSkyz

» Western reactions to the controversial Benin Bronzes
 Understanding the Glass-Steagall Act EmptyMon Aug 07, 2023 3:29 pm by PurpleSkyz

» India unveils first images from Moon mission
 Understanding the Glass-Steagall Act EmptyMon Aug 07, 2023 3:27 pm by PurpleSkyz

» Scientists achieve nuclear fusion net energy gain for second time
 Understanding the Glass-Steagall Act EmptyMon Aug 07, 2023 3:25 pm by PurpleSkyz

» Putin Signals 5G Ban
 Understanding the Glass-Steagall Act EmptyMon Aug 07, 2023 3:07 pm by PurpleSkyz

» “Texas Student Dies in Car Accident — Discovers Life after Death”
 Understanding the Glass-Steagall Act EmptyMon Aug 07, 2023 3:05 pm by PurpleSkyz

» The hidden history taught by secret societies
 Understanding the Glass-Steagall Act EmptyMon Aug 07, 2023 3:03 pm by PurpleSkyz

» Vaccines and SIDS (Crib Death)
 Understanding the Glass-Steagall Act EmptyMon Aug 07, 2023 3:00 pm by PurpleSkyz

» Sun blasts out highest-energy radiation ever recorded, raising questions for solar physics
 Understanding the Glass-Steagall Act EmptyMon Aug 07, 2023 2:29 pm by PurpleSkyz

» Why you should be eating more porcini mushrooms
 Understanding the Glass-Steagall Act EmptySun Aug 06, 2023 10:38 am by PurpleSkyz


You are not connected. Please login or register

Understanding the Glass-Steagall Act

Go down  Message [Page 1 of 1]

1 Understanding the Glass-Steagall Act Empty Understanding the Glass-Steagall Act Sat Aug 04, 2012 5:37 pm

Guest

Anonymous
Guest

 Understanding the Glass-Steagall Act Bring-back-glass_steagall-194x300

Understanding the Glass-Steagall Act


By Drake


Posted on 08/03/2012


Understanding How Glass-Steagall Act Impacts Investment Banking and the Role of Commercial Banks




Contents At A Glance

Use these hyperlinks to jump to the particular section; use the
search feature on you browser to find particular information on this
page; or simply go down the page using the scroll bars to read in a
linear fashion.


Introduction to the Glass-Steagall Act

Causes For and Brief History of Glass-Steagall Act

Carter Glass and Henry Steagall

Restrictions and Repeals in the Bank Holding Company Act

The Provisions Within the Sections of the Glass-Steagall Act

The Generally Accepted Rationale for the Separation of Commercial and Investment Banking

A Summary of the Rationale Leading up to the Enactment of the Glass Steagall Act



Introduction to the Glass-Steagall Act


The Glass-Steagall Act has remained one of the pillars of banking
law since its passage in 1933 by erecting a wall between commercial
banking and investment banking. In effect, the law keeps banks from
doing business on Wall Street, and vice versa. In actuality, there are
two Glass Steagall measures. The first was the Glass-Steagall Act of
1932, a bookkeeping provision that allowed the Treasury to balance its
account. And what is commonly known today as the Glass-Steagall law is
actually the Bank Act of 1933, containing the provision erecting a wall
between the banking and securities businesses. It also laid the
groundwork for legislation that would allow the Federal Reserve to let
banks into the securities business in a limited way.

Causes For and Brief History of Glass-Steagall Act


Fundamental to an understanding of the passage of the Glass-Steagall
Act is the fact that by 1933 the U.S. was in one of the worst
depressions of its history. A quarter of the formerly working population
was unemployed. The nation’s banking system was chaotic. Over 11,000
banks had failed or had to merge, reducing the number by 40 per cent,
from 25,000 to 14,000. The governors of several states had closed
their states’ banks and in March President Roosevelt closed all the
banks in the country. Congressional hearings conducted in early 1933
seemed to show that the presumed leaders of American enterprise — the
bankers and brokers — were guilty of disreputable and seemingly
dishonest dealings and gross misuses of the public’s trust. Looking
back, some historians have come to a different conclusion about the role
such abuses played in bringing down banks. Some historians now say the
chief culprit of bank failures was the Depression itself, which caused
real estate and other values to fall, undermining bank loans. Securities
abuses played a minimal role in the collapse of banks, these historians
say, and caused few failures among the New York banks with the largest
Wall Street operations.

The Banking Act of 1933 was probably the newly-elected Roosevelt
administration’s most important response to the perceived shambles of
the nation’s financial and economic system. But the Act did not change
the most important weakness of the American banking system — unit
banking within states and the prohibition of nationwide banking. This
structure is considered the principal reason for the failure of so many
U.S. Banks, some 90 percent of which were unit banks with under $2
million in assets. (In contrast, Canada, which had nationwide banking,
suffered no bank failures and only a few of the over 11,000 U.S. Banks
that failed or merged were branch banks.) Instead, the Act established
new approaches to financial regulation — particularly the institution of
deposit insurance and the legal separation of most aspects of
commercial and investment banking (the principal exception being
allowing commercial banks to underwrite most government-issued bonds)....

Read Full Article: http://ascension2012andbeyond.com/understanding-glass-steagall-act/

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum