In late 1999, the bulwark bank regulation of 1933, the Glass-Steagall Act -- the wall between investment banks and commercial banks -- was torn down. This was a great victory for creative bankers, who had found the wall irksome and restrictive.
However, this teardown reduced the stability of the financial system and opened the way for the Bankers Panic of 2008. Senator Carter Glass, who led in the creation of the Federal Reserve System in 1913, saw how the deposits of...
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