Effect of US Glass-Steagall Act
Effect of US Glass-Steagall Act
- Introduction
The Glass-Steagall Act was passed by the U.S. Congress in 1933 as the Banking Act, which disallowed business banks from partaking in the speculation managing an account business. (Alex, 2017) Glass-Steagall was supported by Senator Carter Glass, a previous Treasury secretary, and Rep. Henry Steagall, an individual from the House of Representatives and Chairman of the House Banking and Currency Committee. The demonstration was passed as a crisis measure to counter the disappointment of very nearly 5,000 banks amid the Great Depression. The effect of US Glass-Steagall Act lost its intensity in resulting decades and was mostly revoked in 1999. Formally known as the Banking Act of 1933, it was one of the milestone …