The beginning of the world recession caused by de-regulation of banks: Nov. 1999: Repeal of Glass-Steagall The Glass-Steagall Act (formally the Banking Act of 1933), was a depression-era law that separated commercial and investment banking in order to protect people’s bank accounts from risky investments. In 1999, culminating a decade of deregulation of the financial industry, this wall was essentially torn down by the Financial Services Modernization Act of 1999, also known as the Gramm–Leach–Bliley Act. One of the lone objectors to the legislation, Sen. Byron Dorgan, D-North Dakota, famously remarked, “I think we will look back in 10 years time and say ‘we should not have done this.’” A decade later, the repeal of Glass-Steagall was widely cited as a major cause of the financial crisis of 2008.
Posted on: Mon, 05 Aug 2013 20:30:54 +0000
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