Glass-Steagall - Banking Act of 1933
Facts for kids
The following fact
sheet contains interesting facts and information on the
purpose, effects and significance of the Glass-Steagall Act
as part of FDR's New Deal to combat the effects of the Great
Depression.
Facts
about the Glass-Steagall - Banking Act of 1933 for kids
Glass-Steagall Act Fact 1:
The law was originally enacted as
part of President Franklin D. Roosevelt's New Deal
program as an emergency response to the collapse of
nearly 5,000 banks and the banking crisis during the
Great Depression. The law became a permanent measure in
1945.
Glass-Steagall Act Fact
2: The sponsors of the Glass-Steagall
Act were Senator Carter Glass of Virginia, and
Representative Henry B. Steagall of Alabama.
Glass-Steagall Act Fact
3:
The "Fed" is the central bank of the United States and
controls the money supply. The first Glass-Steagall Act
of 1932 was passed on February 27, 1932 during the administration of
President Hoover to allow the "Fed" to back its notes
with government securities, rather than gold, and
secondly to loan out the countries gold reserves.
Glass-Steagall Act Fact
4:
The second act, aka the Banking Act of 1933, is the law
most people refer to as the Glass-Steagall Act and was passed into
law on June 16, 1933.
Glass-Steagall Act Fact
5: Definition: The second Glass-Steagall Act of 1933
separated investment banking from commercial banking and established
the Federal Deposit Insurance Corporation
(FDIC)
Glass-Steagall Act Fact
6: Purpose: The purpose of the second Glass-Steagall
Act of 1933 was to prohibit speculation in securities making banking
safer.
Glass-Steagall Act Fact
7: Before this law was passed banks were
able to risk their depositors money by using it to
speculate on the stock market. The law prohibited
commercial banks from owning securities brokerage firms
and forced a separation of commercial and investment
banks
Facts
about the Glass-Steagall - Banking Act of 1933 for kids
Facts
about the Glass-Steagall - Banking Act of 1933 for kids
The following fact
sheet continues with facts about Glass-Steagall - Banking
Act of 1933 for kids
Facts
about the Glass-Steagall - Banking Act of 1933 for kids
Banking Fact
8: Commercial Banking Definition: The
commercial banks were allowed to conduct everyday
banking transactions such as cashing checks, taking
deposits, paying interest on deposits and loaning money
to businesses and for mortgages. Banks were no longer
allowed to speculate vast amounts of their customers
money on the Stock Exchange.
Banking Fact
9: The purpose of the creation of the
Federal Deposit Insurance Corporation (FDIC) was to
protect bank customers further by providing Government
insurance for bank deposits.
Banking Fact
10: 'Regulation Q' was another part of
the law that enabled the Federal Reserve Board to
prohibit banks from being able to pay interest on
deposits within checking accounts to prevent the
activities of loan sharks
Banking Fact
11: The passing of the law reflected the
general desire to “restore” commercial banking to the
progressive purposes envisioned by the
1913 Federal Reserve Act and the drive for new
regulations for the banks and the Stock Exchange
Banking Fact 12:
The effect of the law and the establishment of
the FDIC was to further restore public confidence in banking
practices and the banking system during the Great Depression.
Banking Fact 13:
Repeal: Significant changes were later made to
the law was repealed during the administration of President Bill
Clinton with the passing Gramm-Leach-Bilely Act of 1999
Facts
about the Glass-Steagall - Banking Act of 1933 for kids
Facts
about
Glass-Steagall - Banking
Act of 1933:
For visitors interested in the history of
banking during the Great Depression refer to following article
on the
Emergency Banking Relief Act
and the
Federal Deposit Insurance Corporation.
Glass-Steagall Act - President Franklin Roosevelt Video
The article on the Glass-Steagall Act provides detailed facts and a summary of one of the important events during his presidential term in office. The following
Franklin Roosevelt video will
give you additional important facts and dates about the political events experienced by the 32nd American President whose presidency spanned from March 4, 1933 to April 12, 1945.
Glass-Steagall - Banking Act of 1933
●
Interesting Facts about Glass-Steagall Act for kids and schools
●
Summary of the Glass-Steagall - Banking Act of 1933 in US history
●
Glass-Steagall - Banking Act of 1933 important, key
events
●
Franklin Roosevelt
Presidency from March 4, 1933 to April 12, 1945
●
Fast, fun facts about the Glass-Steagall - Banking Act of 1933
●
Foreign & Domestic
policies of President Franklin Roosevelt
● Franklin Roosevelt Presidency and
Glass-Steagall - Banking Act of 1933 for schools,
homework, kids and children |