From: LAURENT CHEKROUN (MAKOR SECURITIES LO) At: 03/09/17 20:18:03
Subject: >>> Trump Committed to Restoring Glass-Steagall: Spicer
Trump Committed to Restoring Glass-Steagall: SpicerPresident Trump is committed to restoring Glass-Steagall protections that separate commercial and investment banking, White House spokesman Sean Spicer says.
- NOTE: Bringing back Glass-Steagall Act separation was included in 2016 GOP platform and backed by Trump
- Law was set up after the 1929 stock market crash helped trigger the Great Depression; it was repealed in 1999 under former President Bill Clinton
The Glass–Steagall legislation describes four provisions of the U.S. Banking Act of 1933 separating commercial and investment banking. The article 1933 Banking Act describes the entire law, including the legislative history of the provisions covered here.(The common name comes from the names of the Congressional sponsors, Senator Carter Glass and Representative Henry B. Steagall. A separate 1932 law described in the article Glass–Steagall Act of 1932, had the same sponsors, and is also referred to as the Glass–Steagall Act).The separation of commercial and investment banking prevented securities firms and investment banks from taking deposits, and commercial Federal Reserve member banks from:
- dealing in non-governmental securities for customers
- investing in non-investment grade securities for themselves
- underwriting or distributing non-governmental securities
- affiliating (or sharing employees) with companies involved in such activities