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I will pay for the following essay Assignment Question : The repeal of the US Banking Act 1933 (commonly known as the Glass-Steagall Act) was a substantial ca. The essay is to be 10 pages with three t
I will pay for the following essay Assignment Question : The repeal of the US Banking Act 1933 (commonly known as the Glass-Steagall Act) was a substantial ca. The essay is to be 10 pages with three to five sources, with in-text citations and a reference page.
Download file to see previous pages...Multinational corporations, in pursue of profits, lobbied for deregulation during the last twenty years of the twentieth century, and as a result, the global banking crisis of 2007 – 2008 occurred. Global regulatory agencies, in response to the banking crisis, instituted global regulations in the global banking environment. This paper will examine the regulatory measures of the United States Banking Act of 1933, the process to repeal the Glass-Steagall Act, and the international aspects of banking regulations. Glass-Steagall Act Before the stock market crash of 1929, bank activities and investment activities were sometimes identical. During the Great Depression after the 1929 crash, Congress analyzed the mingling of commercial funds and investment assets in the banking system that transpired during the 1920s. Legislation prior to the 1920’s created the banking environment that led to the crash. The National Bank Act of 1863 launched a national banking arrangement regulated by the Comptroller of the Currency that allowed banks to take on activities through operating subsidiaries (Wilson, G 1995). The National Banking Act of 1863 permitted the configuration of private banking firms that could invest some of their assets in bonds of the United States ('National bank' 2010). ...
lano Roosevelt, in response to the banking crisis, implemented the Banking Act of 1933 that created the Federal Deposit Insurance Corporation and called for the Federal Reserve to monitor proceedings of banks (Wilson, G 1995). The Glass-Steagall Act enforced the separation of commercial banking and investment banking (Wilson, G 1995). The Glass-Steagall Act forbade banks from underwriting and disseminating company stocks but allowed underwriting of municipal bonds and United States bonds. Congress was worried by numerous bank procedures concerning speculative investments with bank assets. There were concerns financial institutions were investing customer deposits in high-risk securities and they were also manipulating the stock prices of corporations contained in the bank’s portfolios (Norton, SD 2010). Glass-Steagall changed the regulatory structure in the banking environment. It barred commercial banks from consorting with a corporation whose activities predominantly involved the distribution, underwriting, or public marketing of stocks, bonds, or any other type of securities (Norton, SD 2010). It also barred Federal Reserve member banks to associate with any firm that is enlisted primarily in underwriting or distributing securities and it made it illegal for investment firms to accept deposits (Barth, ,, Brumbaugh Jr., R, &. Wilcox, J 2000). As a result, some large investment corporations, like Morgan Stanley &. Co. and First Boston Corporation were created when security firms made a decision to stay in the securities industry and terminate their commercial banking relationships (Angermueller, H, &. Taylor, M 1977).
