Is most closely related to the Glass Steagall Act?

Answer 1

The Glass-Steagall Act, enacted in 1933, primarily aimed to separate commercial banking from investment banking to reduce risks and conflicts of interest in the financial system. It established regulations that prohibited banks from engaging in both activities, thereby protecting consumer deposits from the volatility associated with securities trading. The act was largely repealed in 1999, leading to discussions about its relevance in the context of the 2008 financial crisis, as many argued the repeal contributed to increased risk in the banking sector.