Under the Glass-Steagall Act, commercial banks, which accept deposits and are covered by deposit insurance, were not allowed to trade in financial assets, such as stocks and bonds.

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This is the basic premise of the Glass-Steagall Act, which was meant to prevent potential conflicts of interest and unfair advantages in the financial industry. However, some of these restrictions were lifted in the late 1990s and 2000s, leading to the financial crisis in 2008.

Under the Glass-Steagall Act, Commercial Banks, Which Accept Deposits and Are