quora
Nobody downloaded yet

Banking Act of 1933 Glass-Steagall Act - Article Example

Comments (0) Cite this document
Summary
As a result of the United States economy collapse of 1933, President Roosevelt enacted the Glass-Steagall act. During this period, unemployment rate increased as a result of banks failing or merging. State Governors closed several state banks…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER94.3% of users find it useful
Banking Act of 1933 Glass-Steagall Act
Read TextPreview

Extract of sample
"Banking Act of 1933 Glass-Steagall Act"

Download file to see previous pages Senator Carter Glass, who was a former treasury secretary, is the main man behind the act. Henry Steagall was the other sponsor. The act applies to both national banks and state chartered banks (Dept 12).
Though the Glass-Steagall act, the government upheld its role to provide quality, public policy. It can be argued that the act went a long way in easing the depression. This occurred because of the measures the Act put in place to prevent further losses. For instance, limiting commercial banks investments prevented underwriting by banks. This allowed for faster liquidation of assets by banks. This led to separation of commercial banks from investment banks. In 1999, the Gramm-Leach-Bliley act repealed the provision that restricted banks and securities firms affiliations section 16 prevented the purchasing or selling of securities by national banks except when the bank acts as a customer’s agent (Dept 23). Under the act, the government tried to resolve the conflict of interest that arises with regard to granting credit. Section 32 prevented common directors and employees access to credit Four sections of the act,sections16,20,21and 32,laid out the provisions for acquiring securities, both directly and indirectly in case the bank needed fast access to short term credit. For instance, section 11(a) prevented Federal Reserve member banks from placing loans to dealers or brokers. The Act limited the previous enormous power of the banks. This Act prevents bank’s ability to expand greatly, which was possible to achieve by creating a barrier between banking and insurance against aggressive expansions. As a result of the bank’s risky moves, there was the provision for insurance to minimize losses. Over time, limits on insurance from 2,500 USD in 1934, continues to take place. Currently the FIDC provides insurance for safety deposits of member banks of up to 250,000 USD per depositor in each bank initially, under the act. FDIC had the mandate to regulate and supervise banks, which are non-members in a given State. Through the US treasury, and Federal Reserve an initial 289 million funded the Act. The Act through FDIC also prohibited payment of interests on checking accounts. There are also provisions in the Act, which allow national banks to have branches statewide depending on the state’s law (Dept 20). The Glass-Steagall Act provided the government with the opportunity of displaying its understanding of the public’s interest. The institution of the Act by the government proved beneficial in helping the public deal with the recovery period after the effects of the Great economic depression of 1929. The creation of the Federal Deposit Insurance Corporation (FDIC) affected the public on a personal level compared to the other reforms brought about by this Act. This is because the FDIC created a buffer for citizens making a deposit of over 5,000 USD by insuring the money deposited. This served to eliminate any unforeseen, future risks, for example, an economic depression. As a result, individuals had the opportunity of getting their money back in the event of an economic catastrophe. The FDIC also helped to reaffirm the government’s commitment in safeguarding the financial welfare of its citizens (Dept 25). The different branches of the government played an integral role with regard to ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Banking Act of 1933 Glass-Steagall Act Article Example | Topics and Well Written Essays - 1000 words”, n.d.)
Retrieved from https://studentshare.org/history/1455718-banking-act-of-1933-glass-steagall-act
(Banking Act of 1933 Glass-Steagall Act Article Example | Topics and Well Written Essays - 1000 Words)
https://studentshare.org/history/1455718-banking-act-of-1933-glass-steagall-act.
“Banking Act of 1933 Glass-Steagall Act Article Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/history/1455718-banking-act-of-1933-glass-steagall-act.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Sentencing Provisions of the Criminal Justice Act of 2003
Decisions taken prior to the sentencing process will impact upon the final outcome in any case. Determination of guilt is one of the most important of these, because a lea of guilty may mitigate the sentence. Additionally, since crimes have now become media highlighted subjects, there is often a great deal of publicity attached to the outcome of such cases, which has contributed to the political sensitivity now associated with the subject of crime, with political parties pitting themselves against each other, to be viewed as the protectors of law and order.
13 Pages(3250 words)Article
Patient Protection and Affordable Care Act of 2010 - Pros
For those that cannot afford to pay, the quality and standard of care is low and the burden of payment is born by the taxpayer. Couple this with the fact that insurance has become prohibitively expensive for many families, a perfect storm has resulted that has truly bought the entire integrity of the healthcare system within the country to a breaking point.
10 Pages(2500 words)Article
Education, No child left behind act
John Adams, one of the Founding Fathers stated: "Education for every class and rank of people down to the lowest and the poorest." The principles of No Child Left Behind can be traced back to a historical piece of legislation, Brown v. Board of Education, when the U.S.
6 Pages(1500 words)Article
Implementation and Analysis the Dream Act
al legal status to youth; who entered the United States before the age of 16, have been in the US for five years prior to the legislation enactment, have attained a diploma or equivalent and should be below 35 years of age. The policy does not offer permanent nationality, but it
2 Pages(500 words)Article
The asylum and immigration act 2004 [uk]
There are several benefits to being accountable to those in need of a firm grip on removing unwanted criminal elements from a terror-stricken society. Unfortunately, if few or any criteria can define who is and who is not eligible to receive benefits of a European community, the entire purpose of restoring hope to lives destroyed by injustice is fragmented.
3 Pages(750 words)Article
Mental Health Access ACT OF 2012
Topic: Editorial to submit to USA today for possible publication on why I think the Mental Health Access ACT OF 2012 needs to be passed so it can help the nation’s veterans. At the front, the war veterans are part of the collective force. When the war is over, the inner war of each soldier begins which is broadly categorized as post-traumatic stress disorder (PSTD).
2 Pages(500 words)Article
American Disability Act
The gravity of this situation is the fact that the act can encompass all sorts of disorders that are not considered to be a disability. The fact remained that employers were attempting to diagnose
1 Pages(250 words)Article
Describe, discuss and explain the significance of the Indian Removal Act
The act also made Cherokees to declare themselves as an independent state within Georgia but the Supreme Court ruled that Cherokees were not nation or a state within Georgia
1 Pages(250 words)Article
The sing glass, the singing art
There are small lights that illuminate the glass sculptures spread all over the car, but aside from this, the surrounding area is dimmed. The first things that come to mind upon seeing this piece of artwork are the intricate and seemingly random shapes
2 Pages(500 words)Article
For and against reforming the Toxic Substances Control Act (TSCA)
The TSCA develops frameworks and policies that can be used by EPA. Since the passing of the act, very minimal reforms have been made to the act. Over the past years,
2 Pages(500 words)Article
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Article on topic Banking Act of 1933 Glass-Steagall Act for FREE!
logo footer
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • StudentShare App Store
  • StudentShare Google play
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • Miscellaneous
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us