Glass–Steagall legislation
Glass-Steagall is a big, long name for a rule made a long time ago by the government in charge of banks.
You know what banks are, right? It's where the grown-ups go to keep their money safe. But sometimes, banks would do bad things with all the money they were keeping - like spending it on risky things that might not work out.
That's when the government made the Glass-Steagall rule to help stop banks from doing bad things with the money.
The rule said that banks couldn't do certain things with the money you give them, like using it to gamble or invest in the stock market. They also couldn't use your money to create risky investments that might not work out.
This rule helped make sure that the money you put in the bank stayed safe, and banks couldn't just go and lose it all on something silly.
But, later on, some big banks got upset with the Glass-Steagall rule. They wanted to be able to do more things with your money so they can make more money for themselves. So, after a while, the rule was changed and some of those restrictions were removed.
Some people think this was a bad idea because it let banks do more risky things with your money, and that's how we got into trouble with the economy in the year 2008.
Nowadays, there are debates about whether or not we should bring back the Glass-Steagall rule to make sure banks don't do bad things with our money again.
You know what banks are, right? It's where the grown-ups go to keep their money safe. But sometimes, banks would do bad things with all the money they were keeping - like spending it on risky things that might not work out.
That's when the government made the Glass-Steagall rule to help stop banks from doing bad things with the money.
The rule said that banks couldn't do certain things with the money you give them, like using it to gamble or invest in the stock market. They also couldn't use your money to create risky investments that might not work out.
This rule helped make sure that the money you put in the bank stayed safe, and banks couldn't just go and lose it all on something silly.
But, later on, some big banks got upset with the Glass-Steagall rule. They wanted to be able to do more things with your money so they can make more money for themselves. So, after a while, the rule was changed and some of those restrictions were removed.
Some people think this was a bad idea because it let banks do more risky things with your money, and that's how we got into trouble with the economy in the year 2008.
Nowadays, there are debates about whether or not we should bring back the Glass-Steagall rule to make sure banks don't do bad things with our money again.