# Glass-Steagall Act

- Canonical URL: https://www.gerhardmerk.de/glass-steagall-act
- Post ID: 592910
- Modified: 2023-07-25T21:00:05+00:00
- Language: en

## Definition

Regulation introduced in the USA in 1933, according to which all banks operating in the USA may either engage in the deposit business (commercial banks) or in the securities business (investment banks, also known as broker banks). Under this law, a bank is prohibited from engaging in both business activities at the same time. The purpose of the law, which was in force until 1999, was to protect customers' deposits with a bank from speculative investments. - In the course of the financial crisis that followed the subprime crisis, the reintroduction of the separation of commercial and investment banks was discussed in detail in the USA. However, in view of the complexity of modern banking and the multi-layered nature of some financial products, a revival of the GlassSteagall Act would hardly make sense in the opinion of the majority of experts. The same goal can be achieved through stricter capital requirements. - See banking, limited, deregulation, specialized banking system, investment banking, separation banking system, universal banking. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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