Glass-Steagall Act

The Glass-Steagall Act, enacted in 1933 during the Great Depression, was a U.S. law that separated commercial banking from investment banking. It aimed to reduce the risk of financial crises by preventing banks from using deposits from customers for risky investments. By keeping these activities distinct, the law sought to protect consumers’ savings and promote stability in the financial system. While some provisions of the Glass-Steagall Act were repealed in the late 1990s, discussions about its relevance continue, especially in light of modern financial challenges and crises.