Glass–Steagall Act (Banking Act of 1933)

1) Link to the Text of the Act
Read the statute (12 U.S.C. §§ 24, 78, 377, 378)

2) Why It Was Done
Enacted during the Great Depression, the Act aimed to restore trust in the financial system by separating commercial and investment banking and creating the Federal Deposit Insurance Corporation (FDIC).

3) Pre-existing Law or Constitutional Rights
Before this Act, banks could engage in both deposit-taking and speculative investment, contributing to the 1929 stock market crash. The Act imposed structural restrictions on banks but did not directly override constitutional rights.

Acts

Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA)

Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA, 1989)

1) Link to the Text of the Act
Read the statute (12 U.S.C. §§ 1811 et seq.)

2) Why It Was Done
Passed in response to the Savings and Loan crisis, FIRREA overhauled regulation of thrift institutions, abolished the Federal Home Loan Bank Board, created new oversight agencies, and authorized taxpayer funds to resolve failing S&Ls.

3) Pre-existing Law or Constitutional Rights
Previous deregulation under DIDMCA (1980) and Garn–St Germain (1982) had allowed excessive risk-taking, leading to collapse. FIRREA imposed stricter regulation and accountability, but did not alter constitutional rights.

Acts

Federal Deposit Insurance Corporation Improvement Act (FDICIA)

Federal Deposit Insurance Corporation Improvement Act (FDICIA, 1991)

1) Link to the Text of the Act
Read the statute (12 U.S.C. §§ 1811 et seq.)

2) Why It Was Done
Passed after continuing bank and thrift failures in the late 1980s and early 1990s, FDICIA strengthened the FDIC’s authority, imposed stricter capital requirements, and introduced a system of prompt corrective action to intervene in troubled banks before collapse.

3) Pre-existing Law or Constitutional Rights
FIRREA (1989) had addressed the S&L crisis, but weaknesses remained in deposit insurance and bank supervision. FDICIA expanded federal authority over banks but did not directly impact constitutional rights.