Why a 1933 law separated banking and speculation
Born from the Great Depression, the Glass-Steagall Act separated commercial banking from risky investment speculation, aiming to protect depositors and stabilize the U.S. economy for decades.
After the 1929 stock market crash, the Glass-Steagall Act of 1933 fundamentally changed American banking. It stopped commercial banks from engaging in risky investment banking, separating everyday deposits from stock speculation. This protected people's savings and helped restore trust in the financial system.
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