The Glass-Steagall Act included many regulations and rules that touched on multiple aspects of banking. Some of these included: federal deposit insurance, regulation of interest rates on deposits, capital requirements and the separation of commercial and investment banking (Rotemberg). Because of the large volume of topics in the Glass-Steagall Act, for the purposes of this paper, the focus will remain on the part of the act that pertains to the separation of commercial and investment banking. Commercial banking activities and investment banking activities now were forced to be separate. The Glass-Steagall Act gave banks one year to decided which banking activity they were going to focus on. The reason for this was that there was a certainty
