The name of the act was (is) Glass-Steagall. Don't rely on spell check or post without your glasses on. An excerpt from a textbook was written by Jonathan Macey in 2000 after the passing of the Gramm-Leach-Bliley Act in 1999. His orginal publication explained that the rules of GSA forbad the mixing of investment and savings capital by instutitutions. The GlBA removed that prohibition by allowing some hoop jumping by unscrupulous investment officers. A loop hole if you will for opportuntistic investment officers. Increased the risk, increased the rewards but without the knowledge of the individual investor.
FYI, GSA was passed in 1933 so I don't know what act you're talking about that is over a hundred years old.
Macey, Jonathon (2000), The Business of Banking before and after Gramm-Leach-Bliley. Yes, its only Wikipedia but http://en.wikipedia.org/wiki/Jonathan_Macey You're not arguing with just me but him as well.
- JD Barleycorn
- 06-04-2012, 10:27 AM
- Guest040616
- 06-04-2012, 09:16 PM
- JD Barleycorn
- 06-05-2012, 01:28 AM
Sometimes I post half asleep. Doesn't change the fact that Glass-Smeagal (lol) was overridden in 1999 by Gramm-Leach-Bliley. This allowed banks and investment outfits to move money from savings accounts to accounts that speculated in investments. This increased the risk to your savings without your knowledge. They felt that the FDIC guarantee would cover any losses. So for a investment idiot it was win-win. If they made the right choice, cha-ching! If they made the wrong choice, Uncle Sam would cover their losses.