21st Century Glass-Steagall Act of 2015 – GovTrack.us

The 21st Century Glass-Steagall Act (S. 1709, H.R. 3054) would prohibit commercial banks insured by the Federal Deposit Insurance Corporation (FDIC) from acting as or affiliating with investment banks.A commercial bank holds checking and savings accounts and provides loans for customers. These banks are often insured by the FDIC, which provides a safety guarantee for customers of the insured bank called “deposit insurance.” Investment banks, on the other hand, offer financial advice and facilitate the trade of financial assets. Currently banks can perform both commercial and investment activities, and this combination is believed by some to have been a cause of the 2008-2009 financial crisis.

Source: Summary of H.R. 3054: 21st Century Glass-Steagall Act of 2015 – GovTrack.us

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