BANKING SYSTEM

The Structure of the Banking System

The Structure of the Banking System

Introduction

The purpose of the paper is to identify the main features of the Glass-Steagall Act in order to know if it had the positive or negative effect on the banking industry. Further, the paper explores if this act shall be re-instated in the economy or not.

Following the 1929 crisis in the United States, Franklin Delano Rosevelt takes a series of measures including one regulating the role of banks. The Glass-Steagall Act (the name of Carter Glass, a former Treasury secretary, and Henry B. Steagall, Democrat of Alabama), the activities ...