The banking Act of 1933

Also know as Glass-Steagall , the Banking Act of 1933 effectively separated risky speculative investment banking from traditional . The repeal of this law by Bill Clinton in 1999 led directly to the toxic mortgage – fueled meltdown of 2008.. the root cause of our current economic situation.

Some critics , such Nobel laureate Joseph Stigliz , have long seen the changes of Glass – Steagall as a major factor in 2008 crash. By bringing “investment and commercial banks together , the investment bank culture came out on top”, Stigliz wrote in 2009.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.