Glass-Steagall - Banking Act of 1933

Franklin D Roosevelt

Definition and Summary of the Glass-Steagall - Banking Act of 1933
Summary and Definition: The sponsors of the Glass-Steagall Act were Senator Carter Glass of Virginia, and Representative Henry B. Steagall of Alabama. The Glass-Steagall Act technically refers to 2 separate federal laws, the first was passed on February 27, 1932 and the second was passed on June 16, 1933. The second act, also known as the Banking Act of 1933, is the law most people refer to as the Glass-Steagall Act prohibited commercial banks from engaging in the investment business and created the Federal Deposit Insurance Corporation (FDIC).

Glass-Steagall Glass-Steagall - Banking Act of 1933
Franklin D Roosevelt (FDR) was the 32nd American President who served in office from March 4, 1933 to April 12, 1945. One of the important events during his presidency was passing the second Glass-Steagall Act, also known as the Banking Act of 1933. The law was passed as part of FDR's New Deal Programs that encompassed his strategies of Relief, Recovery and Reform to combat the problems and effects of the Great Depression.

   
  

Glass-Steagall - Banking Act of 1933 Facts for kids
The following fact sheet contains interesting facts and information on the purpose, effects and significance of the Glass-Steagall Act as part of FDR's New Deal to combat the effects of the Great Depression.

Facts about the Glass-Steagall - Banking Act of 1933 for kids

Glass-Steagall Act Fact 1: The law was originally enacted as part of President Franklin D. Roosevelt's New Deal program as an emergency response to the collapse of nearly 5,000 banks and the banking crisis during the Great Depression. The law became a permanent measure in 1945.

Glass-Steagall Act Fact 2: The sponsors of the Glass-Steagall Act were Senator Carter Glass of Virginia, and Representative Henry B. Steagall of Alabama.

Glass-Steagall Act Fact 3: The "Fed" is the central bank of the United States and controls the money supply. The first Glass-Steagall Act of 1932 was passed on February 27, 1932 during the administration of President Hoover to allow the "Fed" to back its notes with government securities, rather than gold, and secondly to loan out the countries gold reserves.

Glass-Steagall Act Fact 4: The second act, aka the Banking Act of 1933, is the law most people refer to as the Glass-Steagall Act and was passed into law on June 16, 1933.

Glass-Steagall Act Fact 5: Definition: The second Glass-Steagall Act of 1933 separated investment banking from commercial banking and established the Federal Deposit Insurance Corporation (FDIC)

Glass-Steagall Act Fact 6: Purpose: The purpose of the second Glass-Steagall Act of 1933 was to prohibit speculation in securities making banking safer.

Glass-Steagall Act Fact 7: Before this law was passed banks were able to risk their depositors money by using it to speculate on the stock market. The law prohibited commercial banks from owning securities brokerage firms and forced a separation of commercial and investment banks

Facts about the Glass-Steagall - Banking Act of 1933 for kids

Facts about the Glass-Steagall - Banking Act of 1933 for kids
The following fact sheet continues with facts about Glass-Steagall - Banking Act of 1933 for kids

Facts about the Glass-Steagall - Banking Act of 1933 for kids

Banking Fact 8: Commercial Banking Definition: The commercial banks were allowed to conduct everyday banking transactions such as cashing checks, taking deposits, paying interest on deposits and loaning money to businesses and for mortgages. Banks were no longer allowed to speculate vast amounts of their customers money on the Stock Exchange.

Banking Fact 9: The purpose of the creation of the Federal Deposit Insurance Corporation (FDIC) was to protect bank customers further by providing Government insurance for bank deposits.

Banking Fact 10: 'Regulation Q' was another part of the law that enabled the Federal Reserve Board to prohibit banks from being able to pay interest on deposits within checking accounts to prevent the activities of loan sharks

Banking Fact 11: The passing of the law reflected the general desire to “restore” commercial banking to the progressive purposes envisioned by the 1913 Federal Reserve Act and the drive for new regulations for the banks and the Stock Exchange

Banking Fact 12: The effect of the law and the establishment of the FDIC was to further restore public confidence in banking practices and the banking system during the Great Depression.

Banking Fact 13: Repeal: Significant changes were later made to the law was repealed during the administration of President Bill Clinton with the passing Gramm-Leach-Bilely Act of 1999

Facts about the Glass-Steagall - Banking Act of 1933 for kids

Facts about Glass-Steagall - Banking Act of 1933:
For visitors interested in the history of banking during the Great Depression refer to following article on the Emergency Banking Relief Act and the Federal Deposit Insurance Corporation.

Glass-Steagall Act - President Franklin Roosevelt Video
The article on the Glass-Steagall Act provides detailed facts and a summary of one of the important events during his presidential term in office. The following Franklin Roosevelt video will give you additional important facts and dates about the political events experienced by the 32nd American President whose presidency spanned from March 4, 1933 to April 12, 1945.

Glass-Steagall - Banking Act of 1933

● Interesting Facts about Glass-Steagall Act for kids and schools
● Summary of the Glass-Steagall - Banking Act of 1933 in US history
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● Franklin Roosevelt Presidency from March 4, 1933 to April 12, 1945
● Fast, fun facts about the Glass-Steagall - Banking Act of 1933
● Foreign & Domestic policies of President Franklin Roosevelt
● Franklin Roosevelt Presidency and Glass-Steagall - Banking Act of 1933 for schools, homework, kids and children

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