WELCOME TO THE COLORADO RIVER TEA PARTY
ALL MEETINGS UNLESS NOTED ARE HELD AT -
Community Christian Church.
6480 E Hwy 95. Yuma, AZ 85365
Thursday, Dec. 12, 2013 Christmas Party at 6 PM
Annual Christmas Party
Thursday, Dec. 19, 2013 noon at Sprague’s store. Meeting this will be the last meeting of the year
Thursday, Jan. 9, 2014, 6 pm Regular Meeting
Thursday, Jan.16, 2014, 12 noon Regular Meeting
Thursday, Jan.23 ,2014, 6 pm Regular Meeting
Thursday, Jan. 30, 2014, 12 noon Regular Meeting
Legislative reports and other current issues discussed at each meeting! Educational programs and speakers may be added to regular meetings as they become available.
Definition of ‘Glass-Steagall Act’
An act the U.S. Congress passed in 1933 as the Banking Act, which prohibited commercial banks from participating in the investment banking business. The Glass-Steagall Act was sponsored by Senator Carter Glass, a former Treasury secretary, and Senator Henry Steagall, a member of the House of Representatives and chairman of the House Banking and Currency Committee. The Act was passed as an emergency measure to counter the failure of almost 5,000 banks during the Great Depression. The Glass-Steagall lost its potency in subsequent decades and was finally repealed in 1999.
Investopedia Says Investopedia explains ‘Glass-Steagall Act’
Apart from separating commercial and investment banking, the Glass-Steagall Act also created the Federal Deposit Insurance Corporation, which guaranteed bank deposits up to a specified limit. The Act also created the Federal Open Market Committee and introduced Regulation Q, which prohibited banks from paying interest on demand deposits and capped interest rates on other deposit products (it was repealed in July 2011).
The Glass-Steagall Act’s primary objectives were twofold – to stop the unprecedented run on banks and restore public confidence in the U.S. banking system; and to sever the linkages between commercial and investment banking that were believed to have been responsible for the 1929 market crash. The rationale for seeking the separation was the conflict of interest that arose when banks were engaged in both commercial and investment banking, and the tendency of such banks to engage in excessively speculative activity.
The Glass-Steagall Act’s repeal in 1999 is believed in some circles to have contributed to the 2008 global credit crisis. Commercial banks, around the world, were saddled with billions of dollars in losses due to the excessive exposure of their investment banking arms to derivatives and securities that were tied to U.S. home prices. The severity of the crisis forced Goldman Sachs and Morgan Stanley, the last of the top-tier independent investment banks, to convert to bank holding companies. Coupled with the acquisition of other prominent investment banks Bear Stearns and Merrill Lynch by commercial banking giants JP Morgan and Bank of America, respectively, the 2008 developments ironically signaled the final demise of the Glass-Steagall Act.
Brought to you by Investopedia