Banking Act of 1933

Major banking legislation passed by the 72d Congress in 1933. It was sponsered by Senator Carter Glass (D-VA) and Representative Henry B. Steagall (D-AL) and so is often called the Glass-Steagall Act of 1933. (See also Glass-Steagall Act of 1932).

This law created the Federal Open Market Committee which gave the Federal Reserve Board of Governors effective control over U.S. monetary policy. It also created the Federal Deposit Insurance Corporation which protected individual depositors for up to ???????. Sections Sections 16, 20, 21, and 32 were the Glass-Steagall Act of 1932 which forbade commercial banks from engaging in investment activities such as loans as to brokerages. This portion of the law was repealed by the Gramm-Leach-Bliley Act of 1999.