What is the Glass-Steagall Act of 1933?

The Glass-Steagall Act was introduced during the Great Depression by former Treasury Secretary Sen. Carter Glass (D-VA) and Chairman of the House Banking and Currency Committee Rep. Henry B. Steagall (D-AL).

As one of the first acts of FDR’s New Deal, the legislation segregated commercial banks from securities markets, established the Federal Deposit Insurance Corporation (FDIC) and enhanced the regulatory powers of the Federal Reserve over banks.