Glass-Steagall is a banking law that was passed as part of the New Deal 75 years ago. This law required banks to choose between being commercial or investment banks. It was repealed in 1999 at the end of the Clinton era.
Why should we think about old banking regulations? Because the financial system is in serious trouble. To me it seems obvious that financial deregulation has contributed to many of our current troubles.
Here’s a recent article about Glass-Steagall. If you’re interested in getting a bit deeper into the technical aspects of banking policy, this 1976 speech by one of the SEC leaders is well worth your review. The speaker is discussing the issues surrounding possible changes to Glass-Steagall which would allow banks to have a bit more latitude to offer more services.
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