Glass-Steagall Act

The Glass-Steagall Act of 1933 was passed in the aftermath of the crash of
1929. The following provisions were enacted:

   * Separated the activities of banks and securities firms (prohibited
     commercial banks from owning brokerages)
   * Introduced FDIC insurance
   * Regulation Q which placed a cap on interest paid on savings accounts

On November 12, 1999, President Clinton signed into law the
Gramm-Leach-Bliley Act, which repealed the Glass-Steagall Act. One impact of
this repeal is that certain advisory activities of the banks are now
regulated by the Investment Advisor Act of 1940.