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The Financial Services Revolution: Policy Directions for the Future

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In Chapter 5, William Shughart also considers the part that politics played in banking legislation during the 1930s, but he looks at the banking legislation passed in the United States. Shughart draws particular attention to the provisions in the Banking Act of 1933 that required the separation of commercial and investment banking activ­ ities. Applying a public choice analysis, Shughart asks who gained from the provisions, and he concludes that the commercial banking industry, the investme...