RESEARCH PROPOSAL

Repeal of Glass Steagall Act

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Abstract

The paper discusses if Glass Steagall Act would have been intact, it would have assured commercial banks and similar institution are not making any of the investment and purchasing the stocks or bonds, which are highly speculative in their nature. The sectors would have survived the impact of the crash, as it would have been made sure that commercial banks are not involved in any kind of collateralized debt obligations, subprime mortgages and other risky loans. Almost all the big banks such as Wachovia, Citibank, JP Morgan Chase, Bank of America, and Wells Fargo are national banks and all of them were subjected to the financial crisis due to their negation with the Glass Steagall Act.

Table of Contents

Abstract2

Introduction4

Outline of the Study4

Problem Statement4

Research Question4

Research Objectives4

Rationaile5

Literature Review5

Methodology7

Research Philosophy7

Research Method7

Mixed Method Research7

Conclusion7

References9

Introduction

Outline of the Study

This study will be based on the topic repeal of Glass-Steagall act and the current financial crisis, with discussing whether to keep on repealing the act or should investment and commercial banks be separated again. The first chapter will provide an introduction to the topic including the purpose and significance of the study. The second chapter will present a review of relevant literature, highlighting the previous research carried out in this field. The third chapter will cover the methodology for this study. The analysis of findings and discussion will be presented in the fourth chapter. The fifth chapter will conclude the study, providing implications and useful recommendations for further research.

Problem Statement

Glass-Steagall was approved under the Roosevelt management in 1933 in immediate reaction to the Walls Road shenanigans that brought in the Great Depressive disorder where financial institutions pushed their own depositors into purchasing the shares the financial institutions were interacting. The essence was to keep financial institutions from wondering with the cost benefits that Americans were trusting within their containers.

Its repeal, under the Gramm-Leach-Bliley Act, selected and approved by a Republican the legislature, and finalized by Billiam Jefferson Clinton, permitted professional financial institutions to combine with financial commitment financial institutions. For example, Citigroup combined with Vacationer's Insurance (although this merging was declared in 1998, before the act was approved, at time Citigroup CEO Sanford. Weill said that he talked with the Feds and, "that over that period the regulation will modify...we have had enough conversations to believe this will not be a problem.").

Research Question

How the repeal of Glass Steagall Act impacts on the current financial crisis?

Should it be repealed in order to separate investment banks from commercial banks?

Research Objectives

This investigation aims to critically assess how topic repeal of Glass-Steagall act and the current financial crisis, with discussing whether to keep on repealing the act or should investment and commercial banks be separated again. Moreover, it looks to ascertain that whether the repeal of Glass Steagall Act was justified, what were its impacts on the current financial crisis, and whether or not investment banks should be separated from the commercial banks.

Rationale

The Glass-Steagall Act can be considered as ...