2-3 Commercial banks have had limited power to underwrite corporate securities since 1987.

Question

Quizplus · Accepted Answer

The Glass-Steagall Act, which was passed in 1933, limited the power of commercial banks to engage in underwriting and dealing in corporate securities. The act was partially repealed in 1987, which allowed commercial banks to underwrite some types of securities but their power was still limited compared to investment banks.

2-3 Commercial Banks Have Had Limited Power to Underwrite Corporate