Was partially repealed in 1999. Officially named the Banking Act of 1935, it introduced the separation of bank types according to their business (commercial and investment banking), and it founded the Federal Deposit Insurance Company for insuring bank deposits. Literature in economics usually refers to this simply as the Glass-Steagall Act, since it had a stronger impact on US banking regulation. It was passed June 16, 1933. During the dot-com bubbe of the 1990s, lobbyists for mortgage and investment banking companies, lobbied congress to repeal this act so s&l banks could sell sub-prime mortgages to investment banks. In 1999, the United States Congress officially passed a bill that repealed this act. The three congressmen who sponsored this bill are: In the United States House of Representatives Thomas J. Blilely - Thomas J. Bliley, Jr. - Wikipedia, the free encyclopedia. Jim Leach - Jim Leach - Wikipedia, the free encyclopedia In the United States Senate Phil Gramm - Phil Gramm - Wikipedia, the free encyclopedia This bill became known as the Gramm-Leach-Bliley Act. Bill Clinton signed this into law in 1999. Gramm-Leach-Bliley Act - Wikipedia, the free encyclopedia If this bill had not been passed, we wouldn't have had the Housing Bubble and we wouldn't be where we are today with the government spending 1 trillion dollars on bailing us out. Oh, by the way, some of you might recognize one of those names. Phil Gramm. This is the "gentleman" and I use quotes in that because he really isn't one, who called America a bunch of whiners. He was also, up until July, the top economic advisor to presidential candidate John McCain (R). Although he stepped down in July, he is still an unofficial advisor to McCain on economic issues. So when you heard earlier last week, from McCain, that our economy was fundamentally strong, that was because Gramm is trying to cover his tracks for being partially responsibile for this mess.