Partial repeal of Glass-Steagall act
The Gramm-Leach-Bliley act repealed major provisions of the Glass-Steagall act that required separate ownership of commercial banks and investment banks or insurance companies.
The Glass-Steagall act of 1933 was a major legislative response in the US to the depression of the 1930s. It distinguished between commercial banks and investment banks. Both types of banks made loans but differed in the source of funds. Commercial banks accepted deposits; investment banks raised funds by selling bonds and investing on their own account.  Under the act, companies could not combine these activities.  Nor could a single company engage in commercial banking and insurance.

The Gramm-Leach-Bliley act repealed this provision, permitting unified financial companies to provide "one stop shopping" including deposit accounts, stock and bond brokerage, and insurance.  Some commentators see this as a direct cause of the global financial crisis that started in 2006-2007.
CONTEXT(Help)
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The Global Financial Crisis »The Global Financial Crisis
Long-term causes of the financial crisis? »Long-term causes of the financial crisis?
Unintended consequences of earlier public policy choices »Unintended consequences of earlier public policy choices
Partial repeal of Glass-Steagall act
Partial repeal of Glass-Steagall did not contribute to the crisis »Partial repeal of Glass-Steagall did not contribute to the crisis
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