Articles Comments

Debt Relief – Insolvency – Bankruptcy Information » Insolvency » Would reinstating the Glass-Steagall act fix a lot of our banking problems?

Would reinstating the Glass-Steagall act fix a lot of our banking problems?

The Glass-Steagall Act basically separated commercial banks from investment banks and made them separate entities. It kept the banks from getting “too big to fail” so in 1999 when it was repealed allowed banks to not only take your money but then write securities with it and leverage your money to the point of insolvency. This allowed the banks to get too big to fail.

Kinda caused all this problem that we are in today.

Nothingconstant… your right it was implemented after the great depression so the banking system wouldn’t get to big to collapse and it worked just fine until it was repealed. 8 years afterwards look where we are at…
Gotcha!!! and I did misinterpret what you said…


  1. 13. Banking: Successes and Failures Financial Markets (ECON 252) Banks, which were first created in primitive form by goldsmiths hundreds of years ago, have...

  2. How Banks Create Money from Promises: The Inherent Flaw of Fractional Reserve Banking The economic crisis resulted from banks creating money based on unfillable promises. In 1 minute, discover an inherent flaw...

  3. Fractional Reserve Banking — Essential Concepts: Saving Money, Borrowing Money & Systemic Flaws Children and teenagers, as well as adults, can quickly understand the concept of fractional reserve banking, with very little...

  4. Insolvency Problems related to Banks Sector Vs. Insurance Sector? Explain why (a) and (b) might be related (a) Insolvency problems have been much worse in the banking and savings...

  5. Are we slowly learning the REAL reason the banks got bailed out?? (FDIC insolvency)? FDIC is going to BORROW money in order to insure accounts. Well if the people that INSURE THE BANK ACCOUNTS...

Written by

Filed under: Insolvency · Tags: , , , ,

5 Responses to "Would reinstating the Glass-Steagall act fix a lot of our banking problems?"

  1. Croaker says:
    it might….that is the start of many of the problems that we have today.

    i doubt many know of what you speak on.

  2. nothingconstant says:
    It was developed after the Great Depression mess….

    If we reinstated it, that’s just blatant ‘history repeating itself’.

    Will we ever learn?

    That’s my point.

    I think you misinterpreted my answer.

    If we keep having to do the same regulating over and over only for it to be repealed, will we ever learn?

    In other words,

    It shouldn’t have been repealed in the first place.

  3. Roderick B says:
    There were provisions attached to the repeal of “Glass-Steagall” that were to prevent what has happened. The US Congress took an Active Role in thwarting the use of those provisions! Law firms, Lobbyists, “Non Profit” groups, and Maliciously Irresponsible Judges, all of whom put Party Loyalty ahead of their Sworn Duty to the Country, Gladly assisted in this Feast of Thieves.

    If you are serious about fixing the banks and our economy, then the US Congress must be Lawfully purged of the poison that is the Current Membership! They must be brought to justice before it is too late. We have at the most, only thirty six days to go; after that I can’t see any peaceful remedy .

    On the last sentence of the second paragraph, I hope that I will be proven wrong. And yet I truly believe it will be as I fear.

  4. NIkki says:
    It appears so. Coupled with positive Citi earnings, the mere mention of it’s reinstatement had the markets soaring it.

    Steve Forbes, Kudlow & all his economic cronies have been saying a few things over & over – uptick rule, mark to market…do these & the Dow will rebound. Barry’s supposed to be listening to experts. I wish he’d listen to these guys, not tax cheats from the WTO.

  5. The Wise says:
    It’s too late. Certainly if it had never been repealed this wouldn’t have happened or the effects of the mortgage meltdown wouldn’t have been so wide spread.

    It will perhaps help in the future but just reinstating it wouldn’t solve the immediate problems.

Leave a Reply

Connect with Facebook


You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Not finding what you're looking for?
Do a custom search of our entire site:

Get Adobe Flash player