Banking Act of 1933 was a law that established the
Federal Deposit Insurance Corporation (FDIC) in the
United States and introduced banking reforms, some of which were
designed to control
It is most commonly known as the Glass–Steagall Act, after its
Carter Glass and
Henry B. Steagall.
Some provisions of the Act,
Regulation Q, which allowed the
Federal Reserve to regulate interest rates in savings accounts, were
repealed by the
Depository Institutions Deregulation and Monetary Control Act of 1980.
Provisions that prohibit a
bank holding company from owning other financial companies were
repealed on November 12, 1999, by the
The repeal of the
Glass–Steagall Act of 1933 effectively removed the separation that
previously existed between Wall Street investment banks and depository
banks and has been blamed by some for exacerbating the
damage caused by the collapse of the subprime mortgage market that led to
Financial crisis of 2007–2010.
After the Hyperinflation, economic and financial
crisis in Chili a similar Banking Act of 1933 was put in place in
order to protect the depositor. Such a law is A KEY LAW FOR ANY STABLE
AND SANE FINANCIAL SYSTEM. Banks should not be allowed to speculate in
any possible way with the deposits of their customers.
There are two kind of contracts a
depositor can have with his bank. Only one allows the Bank to use the
deposit for other means. Today the line in between these two contacts has
been erased all together and left an extremely dangerous situation.
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