DIGG THIS Part of the current banking crisis is due to the deregulation that Congress brought in known as the Gramm-Leach-Bliley Act of 1999 or the Financial Services Modernization Act. But that deregulation was part of a general movement during the 1990s, approved by piecemeal government regulations and deregulations, that allowed both investment banks and banks to become universal banks. As universal banks, bankers could engage in all manner of highly questionable financial activities and expansions that are totally inconsistent with the safety of bank deposits. Given the government’s guarantees of bank deposits, these sorts of activities should never have … Continue reading Don’t Deregulate Banks