Journal Article

Repealing Glass-Steagall: the past points the way to the future


Abstract: Passed as part of the National Bank Act of 1933, the Glass-Steagall Act prohibits the mixing of commercial and investment bank activities. It was passed during a time of tumult in financial markets: the economy was in depression and there were many bank failures. Given the state of today's banking industry and the current economic climate, is it time to repeal Glass-Steagall? Congress has been debating the issue for some time. In this article, Loretta Mester weighs in with her analysis of the situation. Her conclusion? The data support repeal.

Keywords: Nonbank activities; Insurance; Banking Act of 1933;

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Bibliographic Information

Provider: Federal Reserve Bank of Philadelphia

Part of Series: Business Review

Publication Date: 1996

Issue: Jul

Pages: 3-18