An act passed by Congress in 1933 that prohibited commercial banks from collaborating with full-service brokerage firms or participating in investment banking activities.

Investopedia Says:
The Glass-Steagall Act was enacted during the Great Depression. It protected bank depositors from the additional risks associated with security transactions. The act was dismantled in 1999. Consequently, the distinction between commercial banks and brokerage firms has blurred; many banks own brokerage firms and provide investment services.

Related Links:
Established in 1933 and repealed in 1999, the Glass-Steagall Act had good intentions but mixed results. What Was The Glass-Steagall Act?
Find out why this corporation was developed and how it protects depositors from bank failure. The History Of The FDIC
Learn how SEC was formed, and other important events that shaped financial regulation. The SEC: A Brief History Of Regulation
Get to know a little bit about the institutions whose actions help to guide free markets. The Rise Of The Modern Investment Bank

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