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It was effective. The Glass-Steagall Act kept banking and securities separate. The sub-prime mess occurred after it was repealed and the now unregulated 'market' was allowed to police itself. The Act would have prevented the global crisis caused by the securitization of billions in junk mortgages that brought Wall Street down for a time and wiped out millions of retirement accounts. We found that 'the market' does not indeed regulate itself but rather eats like a pig until it bursts.
The FDIC was created as a result of the act. FDIC stands for Federal Deposit Insurance Corporation. The purpose of this is to provide "Deposit Insurance" which guarantees the safety of cash deposited in its member banks, currently up to US $ 250,000 per depositor per bank. Currently FDIC insures deposits at more than 7500 institutions in the USA. This is to ensure that customers do not lose out their hard earned money in case of bank failures or bankruptcy.
The 1933 Glass-Steagall Act restricted banks' ownership of brokerages. It separated commercial banking from investment banking to prevent fraud, conflicts of interest and distortion of competition in general.
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∙ 14y ago
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∙ 10y agoVery
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the proclamation's the townshend was too.
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is privet banks comes in money lending act criteria
