Senate Panel to Mull Repeal of Bank Law
With a self-imposed moratorium expiring, the Senate Banking Committee will consider a proposal today to repeal a 55-year-old law prohibiting banks from entering the securities business.
The controversial legislation, introduced last year by Committee Chairman William Proxmire (D-Wis.) and Jake Garn (R-Utah), would repeal out the Glass-Steagall Act of 1933 and let bank holding companies underwrite stocks and bonds through separate subsidiaries.
The act, passed after the 1929 stock market crash and subsequent bank failures, has been a mainstay of the nation’s financial system.
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