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Problem

Retail Banks Can Expose Depositors' Funds to the Same Types of Extreme Risks as Investment Banks

2,453 Views / Posted by Aaron Greenspan

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In 1999, largely for the benefit of Citigroup, the Gramm-Leach-Bliley Act repealed the Glass-Steagall Act of 1933, which for seven decades had been successful at preventing banks from gambling with customer deposits. The Glass-Steagall Act had deliberately separated investment banking operations from retail banking operations as a result of the Great Depression. This particular act of deregulation was directly responsible for the Great Recession of 2008, from which we are still recovering.
Supporters: Aaron Greenspan, Eric Teasley, Neil Greenspan, Aaron Wilton, Jonathan Wallis, Taylor Morgan, Kyle Halgerson, Chad Tucker, Scott Cederberg
Opponents: None
Section

Laws and Regulations, United States Code
12 U.S.C. § 377: Title 12, Chapter 3, Sub-Chapter X, Section 377

§377. Repealed. Pub. L. 106?102, title I, §101(a), Nov. 12, 1999, 113 Stat. 1341

Historical and Revision Notes

Section, acts June 16, 1933, ch. 89, §20, 48 Stat. 188; Aug. 23, 1935, ch. 614, title II, §203(a), title III, §302, 49 Stat. 704, 707, prohibited member banks from affiliating with organizations dealing in securities and provided for penalties.

Effective Date of Repeal

Repeal effective 120 days after Nov. 12, 1999, see section 161 of Pub. L. 106–102, set out as an Effective Date of 1999 Amendment note under section 24 of this title.

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Solution Reinstate the Glass–Steagall Act
Put it back how it was before 1999. It was there for a reason, and that reason was called The Great Depression.
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