Did the 'Repeal' of Glass-Steagall Have Any Role in the Financial Crisis? Not Guilty; Not Even Close
Open accessAbstract
Ever since severe turmoil enveloped the financial markets in the fall of 2008, commentators have blamed deregulation of the financial system, and specifically the supposed “repeal” of the Glass-Steagall Act by the Gramm-Leach-Bliley Act of 1999, for the crisis. This has led many to advocate a restoration of the separation of commercial and investment banking that was supposedly the essence of the Glass-Steagall Act. These statements reflect a remarkable degree of ignorance about something that could be easily understood with a small amount of research. In this paper, I will outline the provisions of the Glass-Steagall Act, and show that it did not and could not have had any significant effect in creating or exacerbating the financial crisis.
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European Company and Financial Law Review
(2006) · Deutsche Zeitschrift für Wirtschafts- und Insolvenzrecht · doi:10.1515/ecfr · Cited by 119 · see citing works
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- Authors
- Wallison, P. J.
- Affiliations
- American Enterprise Institute (US)
- Corresponding author
- Wallison, Peter J.
- Venue
- SSRN Electronic Journal
- Publisher
- Elsevier BV
- Published
- 2009
- ISSN
- 1556-5068 (ISSN-L)
- OpenAlex
- W3124607232
- Semantic Scholar
- 48b9d040cf9386c4ad54098433cf65d4674f388e
- Cited by
- 6
- References
- 1
- Citations by year
- 2023: 1 · 2020: 5
- Type
- posted content
- Language
- en
- Open access
- green
- doi.org
- Locations
- SSRN Electronic Journal (acceptedVersion)
- Topics
- Social Sciences › Economics, Econometrics and Finance › Finance › Banking stability, regulation, efficiency
- Social Sciences › Economics, Econometrics and Finance › Finance › finance, banking, and market dynamics
- Social Sciences › Economics, Econometrics and Finance › Finance › Global Financial Regulation and Crises
- Keywords
- Glass-Steagall Act, Gramm-Leach-Bliley Act, financial deregulation, 2008 financial crisis, separation of commercial and investment banking, banking regulation
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