Glass-Steagall
Depression-era banking law
Glass-Steagall refers to provisions of the U.S.
Banking Act of 1933 that separated commercial banking from investment banking.
Banks that took deposits couldn't trade securities; firms that underwrote stocks couldn't hold customer savings.
The law aimed to prevent the conflicts of interest blamed for the 1929 crash.
Its 1999 repeal is often cited in discussions of the 2008 financial crisis: Critics say repealing Glass-Steagall let banks gamble with depositors' money.
State of being apart
- commercial bankingBanking for public customers
- investment bankingAdvisory services for major transactions
- firewallNetwork access control system
- regulationOfficial rules governing conduct
New Deal · Congress · Roosevelt · financial reform · statutory · provisions · affiliates · federal law
Return to previous position
- McCainFrozen food empire
- SandersAn English surname
- too big to failRequiring rescue due to scale
- systemic riskEconomy-wide collapse potential
Dodd-Frank · breakup · restoration · financial stability · consumer protection · antitrust · bank regulation · moral hazard
Final twentieth-century year
- deregulationRemoving governmental business restrictions
- erosionGradual wearing away
- dismantlingTaking apart systematically
- lobbyingAdvocating to decision-makers
Clinton · Citigroup · consolidation · merger · sunset · weakening · loopholes · bipartisan
Year before 2009
- subprimeUnder top credit tier
- derivativesThings derived from another
- speculationUnproven theorizing or risky investment
- contagionDisease spread by contact
Lehman Brothers · AIG · credit default swaps · conflicts of interest · risk-taking · interconnection · shadow banking · securitization
separation
State of being apart
- commercial bankingBanking for public customers
- investment bankingAdvisory services for major transactions
- firewallNetwork access control system
regulation · New Deal · Congress · Roosevelt · financial reform · statutory · provisions · affiliates · federal law
reinstatement
Return to previous position
- McCainFrozen food empire
- SandersAn English surname
- too big to failRequiring rescue due to scale
systemic risk · Dodd-Frank · breakup · restoration · financial stability · consumer protection · antitrust · bank regulation · moral hazard · concentration
1999
Final twentieth-century year
- deregulationRemoving governmental business restrictions
- erosionGradual wearing away
- dismantlingTaking apart systematically
Clinton · lobbying · Citigroup · consolidation · merger · sunset · weakening · loopholes · bipartisan · financial services
2008
Year before 2009
- subprimeUnder top credit tier
- derivativesThings derived from another
- speculationUnproven theorizing or risky investment
contagion · Lehman Brothers · AIG · credit default swaps · conflicts of interest · risk-taking · interconnection · shadow banking · securitization · housing bubble
glasses, Glass-Steagall Act, glassware, glazier, glassful, glassblowing, glassmaking, glassblower, glassmaker