BANKING AFFAIRS

Detailed explanation-1: -June 16, 1933. The Glass-Steagall Act effectively separated commercial banking from investment banking and created the Federal Deposit Insurance Corporation, among other things. It was one of the most widely debated legislative initiatives before being signed into law by President Franklin D. Roosevelt in June 1933.

Detailed explanation-2: -The 21st Century Glass-Steagall Act separates traditional banks that offer savings and checking accounts and are insured by the Federal Deposit Insurance Corporation from riskier financial services, such as investment banking, insurance, swaps dealing, and hedge fund and private equity activities.

Detailed explanation-3: -The Banking Act of 1933, more commonly known as the Glass–Steagall Act, was passed in the wake of the October 1929 stock market crash that plunged the nation into the Great Depression.