121k views
3 votes
How did the Glass-Steagall Act work? or what did it do?

User Fauzan
by
5.2k points

1 Answer

4 votes

Answer:

The Glass-Steagall Act is a 1933 law that separated investment banking from retail banking. ... By separating the two, retail banks were prohibited from using depositors' funds for risky investments. Only 10% of their income could come from selling securities. They could underwrite government bonds.

User JPocoata
by
5.1k points