NPR logo Can We Blame Or Praise Glass-Steagall?

Can We Blame Or Praise Glass-Steagall?

My story on All Things Considered tonight will cover the impact of that depression-era banking law, Glass-Steagall.

Every economist I've spoken with says, simply, that it was a bad law but that it and its repeal are not really to blame for what is happening now.

I found this PDF paper by former IMF chief economist Raghuram G. Rajan and current Fed governor Randy Kroszner dense but helpful.

It explains why the Glass-Steagall Act was a response to a problem that didn't exist.