CAN THE FED REVISE THE LAW?
At the heart of the Bankers Trust case (page 13), lies the question whether the Federal Reserve’s interpretation of Glass-Steagall, the law that separates commercial and investment banking in the US, is so unreasonable that it should be overturned by the courts. The Federal Reserve regulates banks in the US and oversees compliance with Glass-Steagall.
Glass-Steagall–the collective name for the four provisions in the 1933 Banking Act that imposed this rigid demarcation–was passed after the 1929 crash to prevent commerical banks from putting depositors’ funds at risk by participating in speculative investment banking activities.
Access this research
Enter your work email address to sign in or check whether your organisation already has access to Euromoney.
