Banking Act of 1933

Commonly known as the Glass-Steagall Act the Banking Act of 1933, was passed by Congress in 1933 and prohibited commercial banks from engaging in the investment business. It was enacted as an emergency response to the failure of nearly 5,000 banks during the Great Depression. Between 1933 and 1999 Congress approved a number of provisions of legislation weakening the Act and it was repealed in large part by the Financial Services Modernization Act, commonly known as the Gramm-Leach-Biley Act in 1999.