Talk:Glass-Steagall Act

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It says that it took the US off the Gold Standard, but at the bottom it mentions that that act was in fact totally different and happened later. Which is it? Because that is an unclear definition and I need to know the difference for an exam. Can someone please edit it?

the version is wrong. I'm trying to post a new one. In short:

There are two Glass Steagall Acts. The one from 1933 is also called Banking Act of 1933, and it is the more important one. Literature in economics usually refers to the 1933 act.

[edit] First Glass Steagall Act of February 1932

This act allowed that government obligations as well as commercial paper can be used as reserve in banks. Therefore, banks were able to increase credit, and more money was in circulation. It was enacted under President Herbert Hoover. Do not confuse this act with the second Glass Steagall Act of 1933.

See: [http://www.u-s-history.com/pages/h1504.html ]

[edit] Second Glass-Steagall Act (officially called: Banking Act of 1933) (June 16, 1933)

This act introduced the separation of bank types according to their business (commercial and investment banking), and it founded the Federal Deposit Insurance Company for insuring bank deposits. In modern literature usually this is referred to as the Glass Steagall Act, since it had a stronger impact on US banking regulation.

See:

Original Text of the act: "Banking Act of 1933", (= Glass Steagall Act), in: Walsh, Gerard P. Jr. (ed.), Federal Reserve Act of 1913. With Amendments and Laws Relating to Banking, Washington 1981, pp. 163-199. A pdf is available here (downloading takes a while): [1]

"Understanding How Glass-Steagall Act Impacts Investment Banking and the Role of Commercial Banks" [2]

Do not confuse those two acts with this one:

[edit] Emergency Banking Relief Act of 1933 (March 9, 1933)

This act authorizes President Roosevelt to forbid hoarding of gold coins. It authorizes the Treasury to request all people and companies of the U.S. to send in their gold reserves (transportation will be paid by the Treasury.) In addition, this act rules that all banks stop their business (bank holiday) until the Comptroller of the Currency has examined the soundness of such banks and has approved reopening. This act has nothing to do with the Glass Steagall Acts, however, it has often been mixed up.

See:

President Franklin Roosevelt's Bank Holiday Declaration, 1933: [3]

Original Text of the Emergency Banking Relief Act of 1933: [4]