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Glass Steagall Banking Act and FDIC

The Glass-Steagall Act. Passed in 1933sponsored by Carter Glass and Henry SteagallEstablishes the FDIC (Federal Deposit Insurance Corporation)FDIC guarantees a portion of bank depositsSeparates commercial and investment banksCommercial banks can't sell stocks or bondsInvestment banks can't tak

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Glass Steagall Banking Act and FDIC

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    1. Glass Steagall Banking Act and FDIC Cory Pressl Eric Yanowitz

    2. The Glass-Steagall Act Passed in 1933 sponsored by Carter Glass and Henry Steagall Establishes the FDIC (Federal Deposit Insurance Corporation) FDIC guarantees a portion of bank deposits Separates commercial and investment banks Commercial banks can’t sell stocks or bonds Investment banks can’t take deposits Let federal reserve regulate banks

    3. Goal Renew faith in the banking system! This was accomplished by: Assuring people banks are following reasonable practices Protecting a portion of what people deposit through FDIC "deposits are backed by the full faith and credit of the United States Government"

    4. Commercial vs Investment Banks Commercial Banks Take deposits from people and business Loan out money to people and business Investment Banks Don’t take deposits Invest their own money in businesses Dealt with mergers, acquisitions, and making companies public on the stock market

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