Before the Glass-Steagall Act: An analysis of the investment banking activities of national banks

White, Eugene N.

doi:10.1016/0014-4983(86)90018-5

Cited by 155 publications

(64 citation statements)

References 7 publications

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“…However, a loophole in the associated regulatory framework allowed national banks to enter the securities market by setting up affiliated trusts (White 1986). Numerous banks had already broadened their operations through their bond departments; nevertheless, the growing securities market 9 seemed at that time a source of considerable profit, in which traditional banks were not allowed to participate (ibid.).…”

Section: Regulatory Frameworkmentioning

confidence: 99%

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Have we been here before? Phases of financialization within the twentieth century in the US

Fasianos¹,

Guevara²,

Pierros³

2018

ROKE

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This paper explores the process of financialization from a historical perspective during the course of the twentieth century. We identify four phases of financialization: the first from the 1900s to 1933 (early financialization), the second from 1933 to 1940 (transitory phase), the third between 1945 and 1973 (de-financialization), and the fourth period picks up from the early 1970s and leads to the Great Recession (complex financialization). Our findings indicate that the main features of the current phase of financialization were already in place in the first period. We closely examine institutions within these distinct financial regimes and focus on the relative size of the financial sector, the respective regulation regime of each period, the intensity of the shareholder value orientation, as well as the level of financial innovations implemented. Although financialization is a recent term, the process is far from novel. We conclude that its effects can be studied better with reference to economic history.

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Section: Regulatory Frameworkmentioning

confidence: 99%

“…A contributing factor was also the increased competition for deposits (White 1986). According to Dymski (1991), during the 1920s, immense competition for deposits increased interest costs, leading banking institutions on a quest for high return, that is, riskier loans.…”

Section: Regulatory Frameworkmentioning

confidence: 99%

Have we been here before? Phases of financialization within the twentieth century in the US

Fasianos¹,

Guevara²,

Pierros³

2018

ROKE

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“…3 These risks are exacerbated by the U.S. prohibition against nationwide branching, which has made depository institutions vulnerable to unexpected declines in natural resource and farm-product prices, along with changes in regional real estate values (Benston, 1973;White, 1983). Indeed, all except ten of the over 9,000 banks that failed during the Great Depression were unit (single office) banks, most of which were located in small towns.…”

Section: Do Universal Banks Increase the Risk Of Financial Instability?mentioning

confidence: 99%

Universal Banking

Benston

1994

Journal of Economic Perspectives

151

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Universal banks can offer the entire range of financial services within the bank or through subsidiaries. Most countries permit universal banking. In contrast, the United States is served only by specialized banks. Universal banking, particularly in Germany, is contrasted with specialized banking with respect to their effect on financial stability, economic development, other financial institutions, concentration of political and economic power, consumer choice, and conflicts of interest. This examination, including a review of relevant empirical studies, leads to the conclusion that universal banking offers many benefits and few costs to U.S. consumers.

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“…Also see Temin ( 1994) and White ( 1986) for empirical studies questioning the relative susceptibility of universal banking systems.…”

mentioning

confidence: 99%

Relationship Banking, Liquidity, and Investment in the German Industrialization

Fohlin

1998

SSRN Journal

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Before the Glass-Steagall Act: An analysis of the investment banking activities of national banks

Cited by 155 publications

References 7 publications

Have we been here before? Phases of financialization within the twentieth century in the US

Have we been here before? Phases of financialization within the twentieth century in the US

Universal Banking

Relationship Banking, Liquidity, and Investment in the German Industrialization

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