StudentShare solutions
Triangle menu

The 1998 Repeal of Glass Steagall ( 1933) - Essay Example

Nobody downloaded yet
The reasoning behind the enactment of this act was to provide the customers with a one stop financial mart, where they could undertake all their financial activities with one institution, including both saving and investment (Bartiromo, 2008).
Before the legislation, individuals could make their savings with the financial banks but turn to other financial institutions for investment. The legislation allowed the commercial banks to merge with other financial services providing institutions and form Financial Holding Companies (FHC). With such mergers, the combination of these financial service providers allowed them to indulge in all forms of financial activities for their customers (Gramm, 2009). Thus, the FHCs were free to provide such services as granting loans, insurance underwriting and policy offers, brokerage and investment services to their customers, without the necessity of customers seeking such services from different institutions (Benston, 1972). Thus, the enactment was sort after, to ease customer activities of saving and investment.
The other importance attached to the legislation is the fact that it would allow the financial institutions to exploit all the opportunities and revenue efficiencies, by increasing the scope of profit making that was previously hindered by the laws that were in place, notably the Glass Steagall Act (White, 1986). Through the consolidation of all the financial services within the jurisdiction of one institution, the institutions could capture the revenues generated through the various financial services such as insurance underwriting, brokerage, deposits and savings and the issuance of commercial loans (Bartiromo, 2008).
Since the operational expenses of such institutions would be reduced, through having consolidation of overhead costs as well as having the same staffs handle different customer transactions, the costs for such institutions would be highly reduced, thus creating economies of scale. The costs ...Show more
Cite this document
  • APA
  • MLA
(“The 1998 Repeal of Glass Steagall ( 1933) Essay Example | Topics and Well Written Essays - 750 words”, n.d.)
Retrieved from
(The 1998 Repeal of Glass Steagall ( 1933) Essay Example | Topics and Well Written Essays - 750 Words)
“The 1998 Repeal of Glass Steagall ( 1933) Essay Example | Topics and Well Written Essays - 750 Words”, n.d.
  • Cited: 0 times


The 1998 Financial Services Modernization Act is a law that served to remove the barriers that earlier separated the commercial banks form other forms of financial institutions and allowed such institutions to merge (Calabria, 2009). Thus with the enactment of the law,…
The 1998 Repeal of Glass Steagall ( 1933)
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"The 1998 Repeal of Glass Steagall ( 1933)"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

The repeal of the US Banking Act 1933 (commonly known as the Glass-Steagall Act) was a substantial cause of the global bankin
Nobel laureate Paul Krugman who predicted a series of depression in his book Return to Depression Economics has compared the magnitude of this recession with the Great Depression of the forties. Termed as the Great Recession, it affected the lives of millions of people around the world and saw the fall of several financial institutions.
8 pages (2000 words) Essay
Assignment Question : The repeal of the US Banking Act 1933 (commonly known as the Glass-Steagall Act) was a substantial ca
The regulatory environment created by the Glass-Steagall Act to create divisions in the banking system gave way to a deregulatory atmosphere where commercial and investment activities by one firm where permitted. In order to understand how repealing legislation implemented during the Great Depression led to the global banking crisis of 2007 – 2008, the paper will provide a historic background for the legislation of the Glass-Steagall Act, why the banking institutions wanted to repeal the legislation, and examine the creative financial instruments in the banking industry when the Glass-Steagall Act was repealed.
10 pages (2500 words) Essay
Assignment Question : The repeal of the US Banking Act 1933 (commonly known as the Glass-Steagall Act) was a substantial ca
The pursuit of profits by corporations and banks in an unregulated system led to the 1929 stock market crash and the resulting global depression. President Franklin Delano Roosevelt implemented a regulatory environment in response to the banking crisis during the Great Depression era.
10 pages (2500 words) Essay
Author [Manager] EMPLOYMENT LAW 24 November 2015 EMPLOYMENT LAW Jami is clearly a victim of sexual harassment. According to lawyer Mary L. Boland, “sexual harassment is a kind of sex discrimination involving unwelcome sexual conduct or pressure in school or the workplace.
6 pages (1500 words) Case Study
Banking Act of 1933 Glass-Steagall Act
In March, Roosevelt declared a banking holiday. Both the public and the congress placed the blame of depression on the nation’s commercial banks. The act argued that some policies, which support the entry of commercial banks into investment businesses, outweigh the dangers that arise from investing.
4 pages (1000 words) Article
Securities act of 1933
Thus, it has opened up a new door to enhance capital growth and thereby balanced the economy somewhat. Again, this law is necessary in order to resist fraudulent activity, misrepresentation, deceitful dealing in the securities market while the issuer is selling an offer or sale of securities.
7 pages (1750 words) Essay
Germany 1933-1945
The dramatic situation in Germany including the impressive ability of the party to adapt, organize and appeal to a diverse constituency of anti-Weimar voters was
1 pages (250 words) Essay
GrammLeachBliley Act and its effect in Economy
what the arguments for and against were before its enactment and what regulators, investors, financial institutions are now saying about the effects of the law to the economy. This will then analyze and evaluate the arguments and counter arguments in relation to available
17 pages (4250 words) Essay
Compare and contrast the glass-steagall act with the gramm-leach-bliley act, also known as the citigroup relief act
This act sought to establish a complete divorcement between investment banks and commercial banks by deterring commercial banks from involving themselves with securities such as underwriting, flotation, issue, and public sale. Gramm-Leach-Bliley Act otherwise
3 pages (750 words) Essay
1933 Securities Act
It was the first federal law covering the trade in securities, with this trade governed primarily by state laws before the 1929 market crash and the subsequent federal legislation.
2 pages (500 words) Essay
Comments (0)
Click to create a comment
Let us find you another Essay on topic The 1998 Repeal of Glass Steagall ( 1933) for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us