The impact of the repeal of Glass-Steagall Act of 1933 in the context of the current financial crisis

Abstract

The paper critically examines the impact of the repeal of the Glass-Steagall Act in the context of the current financial crisis. It analyses the pre-Glass-Steagall paradigm, the Glass-Steagall regime and post-repeal paradigm. It discusses the impact of the repeal in specific various forms in this background. It also assesses whether Glass-Steagall should be brought back in its original form, in doing so it offers an alternative approach to deal with the future global financial crisis and it also suggests new rules for the protection of the consumers to avoid moral hazard.