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What is Glass-Steagall ?

Glass–Steagall Act (1933) created a wall between banking which deals in stock market securities and commercial banking which accepted your deposits. It prevented banks from taking your personal deposits and gambling with them on the stock market.

It was repealed in 1999, allowing Wall Street bankers to gamble, and lose, with their depositors’ money (Wikipedia). That led to the Financial crisis of 2007–2011 when the banks had to be bailed out.

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October 18, 2011 Posted by | Uncategorized | Leave a comment