The present day bank crisis in America would not have been prevented the bank crises. Glass Siegel legislation was commercial and investment banks should be separate. The crisis came about because there wasn’t enough money to pay deposits. What banks were doing was there reserves were in government securities that the banks couldn’t sell because the interest rates were too low. First it was one bank, then another. It appears that there is a run on several banks because of fear, too many depositors with over $250,000 deposits are fearful they will lose their money. What is happening well financed institutions are buying assets of shaky banks. America can only hope that the buying of assets by the well financed institutions will settle in the minds of depositors that their money is safe. If not the Federal Reserve will have to step in and and put out the fire that they in all likelihood started.
No the old regulations would not have stopped a run on the banks!
The banking crisis in America brought on by ourselves could become a problem that America’s enemies couldn’t have done as hard as they might try!
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