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.