Behind the Glass-Steagall Act was the feeling that __________ is too risky for commercial banks.

Question

Quizplus · Accepted Answer

The Glass-Steagall Act was passed in 1933 after the stock market crash of 1929 and the subsequent banking crisis. The act aimed to separate commercial banking from investment banking activities, as underwriting corporate securities was seen as too risky for commercial banks, which were considered to be essential to the stability of the economy. The act prohibited commercial banks from engaging in certain securities activities, including underwriting and dealing in securities, but allowed them to continue making business loans and real estate loans.

Behind the Glass-Steagall Act Was the Feeling That __________ Is