What is the deregulation of the banking industry?
JB1977 asked:
I always hear about the deregulation of the banking industry in news articles and other web articles and blogs. They say it happened in the 90’s. What happened? How was it deregulated? How restrictive was it before?
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I always hear about the deregulation of the banking industry in news articles and other web articles and blogs. They say it happened in the 90’s. What happened? How was it deregulated? How restrictive was it before?
March 30th, 2009 at 12:51 pm
Under the Glass Steagall Act, a bank could be an investment bank or a commercial bank, but not both.
The Gramm-Leach-Bliley Act replaced the Glass Steagall Act, and is referred to as de-regulation, even though the act instituted new regulations.
As a result of the de-regulation, you see more banks selling securities and more brokerages offering banking products.
See Investopedia for details.