Wall Street Regulation 1933
The Glass-Steagall Act was enacted as part of the Banking Act of 1933 by the United States Congress. Senator Carter Glass, a former Treasury Secretary, and Representative Henry Steagall, chair of the House Banking and Currency Committee, co-sponsored the bill, which forbade commercial banks from engaging in investment banking and vice versa.
During the Great Depression, an emergency procedure was implemented to prevent the failure of nearly 5,000 banks. Glass-effectiveness Steagall’s waned over time, and it was largely repealed in 1999. However, a new financial crisis in the twenty-first century has prompted discussions in political and economic circles about renewing the act.