Which act separated investment from commercial banking?

The Glass-Steagall Act is significant because it established a clear boundary between commercial banking, which involves accepting deposits and making loans, and investment banking, which encompasses the underwriting and selling of securities. Enacted in 1933 as a response to the financial instability of the Great Depression, the act aimed to restore public confidence in the banking system by preventing conflicts of interest that arose when banks engaged in both types of banking activities. This separation was intended to reduce the risk of financial speculation influencing the everyday banking services that consumers relied upon.

Over the years, certain provisions of the Glass-Steagall Act were repealed, leading to the modern landscape of banking where many financial institutions operate in both areas. However, the initial intent to create a barrier and protect consumers and the economy is what makes this act particularly noteworthy for the question regarding the separation of investment from commercial banking.

The other acts mentioned do not pertain to this specific separation. The Securities Act relates to the regulation of securities sales and disclosures, the Wagner Act focuses on labor rights and collective bargaining, and the Davis-Bacon Act pertains to prevailing wage standards for federal contracts. Each of these serves different purposes within the framework of U.S. law and does not address the banking structure as the