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Unformatted text preview: Two separate United States laws are known as the Glass–Steagall Act. Both bills were sponsored by Democratic Senator Carter Glass of Lynchburg, Virginia , a former Secretary of the Treasury , and Democratic Congressman Henry B. Steagall of Alabama , Chairman of the House Committee on Banking and Currency . The first Glass-Steagall Act of 1932 was enacted in an effort to stop deflation and expanded the Federal Reserve 's ability to offer rediscounts [ clarification needed ] on more types of assets such as government bonds as well as commercial paper  . The second Glass– Steagall Act (the Banking Act of 1933) was a reaction to the collapse of a large portion of the American commercial banking system in early 1933. It introduced the separation of bank types according to their business (commercial and investment banking), and it founded the Federal Deposit Insurance Corporation for insuring bank deposits. Literature in economics usually refers to this simply as the Glass–Steagall Act, since it had a...
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This note was uploaded on 10/16/2010 for the course SOC 149 taught by Professor Parker during the Spring '10 term at UC Riverside.
- Spring '10