The Glass-Steagall Act, officially known as the Banking Act of 1933, was a piece of legislation passed in the United States in response to the banking crises during the Great Depression. The act aimed to restore public confidence in the banking system and regulate the financial industry. It primarily sought to separate commercial banking from investment banking activities and establish the Federal Deposit Insurance Corporation (FDIC).
In summary, the Glass-Steagall Act was a pivotal piece of legislation passed in the United States in 1933 in response to the banking crises during the Great Depression. The act sought to separate commercial and investment banking activities and establish the FDIC to insure individual bank accounts. Although the act successfully stabilized the US banking system for several decades, some of its key provisions were eventually repealed, leading to debates about the need for stricter banking regulations in the 21st century.