To prevent it from ever happening again, in 1933 Congress passed the Banking Act of 1933, better known as the Glass-Steagall Act.
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The Glass-Steagall banking Act of 1933, the Securities Act of 1933 or the Securities Exchange Act of 1934 were perhaps the most powerful and important financial laws ever created in the United States.
Congress passed historic banking regulations during the New Deal, including the Glass-Steagall Banking Act of 1933, the Securities Act of 1933, and the Public Utility Holding Company Act of 1935, all of which vastly expanded the role of the federal government in overseeing and regulating Wall Street.
The United States government nationalized all gold through the Emergency Banking Relief Act and the The Gold Reserve Act.
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The Report of Foreign Bank and Financial Accounts requirements (31 CFR 103.24), or the FBAR rules, are part of the Banking Secrecy Act.
There are only three non-bank E-money institutions authorized under the Financial Services (Banking) Act for issuing means of payment in the form of electronic money.
Currently, fear is driving the banking herd to act as one, meaning that courage is called for.
The New York State banking department recommends that consumers act quickly in the event that they believe they have been taken for a ride.
The letters appear to be tied to a broad Foreign Corrupt Practices Act investigation of the banking industry, said attorneys who are familiar with past FCPA investigations of other industries.
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"Card companies are figuring out how to replace old fees with new ones, " says Victor Stango, an associate economist with the Federal Reserve Bank of Chicago and a professor at the University of California, Davis, who has been analyzing how the Card Act will affect consumer banking.
After the Wall Street crash of 1929, it took four years before Congress passed the Glass-Steagall act, which split commercial banking from securities dealing. (Before the legislation bank deposits were frequently diverted in support of new issues by commercial bankers' investment-banking colleagues.) Other restrictive rules continued to be made until 1940.
The finance minister said London is well placed to act as a gateway for Asian banking and investment for Europe and a bridge to the United States.
Yet despite some talk about the need for a new Glass-Steagall act to separate retail and investment banking, and for higher capital charges based on size, the idea of breaking up institutions does not have great momentum.
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The Post Office, for its part, would act as a safety net, offering banking to the far-flung and financially excluded.
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Whereas, the Glass-Steagall Act unfairly limited them to retail and commercial banking.
Merrill was one of the leading campaigners for the abolition of the Glass-Steagall act that kept investment banks out of commercial banking.
Once again the Fed and global central banks have come to the rescue in a coordinated act to shore up confidence in the global banking system.
The Federal Reserve System, reconfigured by the Banking Acts of 1933 and 1935, is able to act quickly to prevent a high-finance crisis from becoming a credit-card crunch.
In America, which banned universal banking after the Great Depression under the Glass-Steagall act, the division between the two kinds was incrementally weakened for decades, before it was finally scrapped in 1999.
In a banking union, eurozone states would pool their resources to act as the insurers or guarantors of last resort for the deposits in eurozone banks and for bailouts of banks that get into difficulties (this would be true, even if banks subscribe to a deposit protection fund, because there would never be enough in this fund to deal with all possible crises).
Yet unless the remitters became embroiled in a serious crime, often involving drug money, Western lawmakers largely ignored them, focusing instead on trying to dam the river of dirty money that flowed through traditional banking channels--chiefly through the 1970 Bank Secrecy Act, and later its amendments, which required banks to file reports of suspicious activity and high-dollar transactions, and to maintain information about account holders' identities.
Yet banking regulators wait for conclusive proof of danger ahead before they act.
After racing through Congress at near break-neck speed, the acronym-friendly Jumpstart Our Business Startups Act (the JOBS Act) has stranded in the Senate Committee on Banking, Housing and Urban Affairs at least 11 other Senate and House bills that deal with securities law reforms.
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There are rumours of several large corporate bankruptcies, possibly only days or weeks away, that could produce a long overdue bout of honesty in the banking system, and leave the government with no choice but to act.
Politicians such as Phil Gramm, formerly a senator from Texas, sponsored the repeal of the Glass-Steagall act, a Depression-era separation of investment and retail banking.
But this influence did not stop Congress passing the Dodd-Frank act, has yet to stop Britain's planned divide between commercial and investment banking, and has not held up a host of new EU regulations.
Sanford Weill built Citi into a too-big-to-fail institution by steamrolling over the last remnants of the Glass-Steagall Act that previously had separated the deposits-and-loans business from riskier activities like investment banking and underwriting stocks.
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Without any proposed capital controls or explicit enforcement measures, the U.S. Markets Security Act of 1997 contains a clear message: The relevant Committees of the Congress -- including Banking, Foreign Relations and Intelligence -- are now watching, even if most in the Executive Branch and the markets remain perilously dismissive of this complicated 21st century security challenge for this country and our allies.
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