Reference no: EM132273657

In my opinion, the Glass-Steagall Act should have never been removed. I believe the separation of commercial banking and investment banking that this act enforced was very useful and kept the money entrusted to the commercial banks safer. If one wanted to invest their money they have the freedom to do so. I also have good faith in and believe that the Dod Frank Act is very helpful for our economy. By regulating banks and the ratings given to debt better than it was before, this act would prevent bad debt from receiving good credit ratings and leading to another big crisis. I believe acts like the Glass-Steagall Act and the Dodd Frank Act are very useful and could prevent another huge financial crisis, such as the Subprime Mortgage Crisis, from occurring again. Although these add more legal issues and compliance risk to banks, banks should focus on compliance along with the regulations placed on them as these regulations prevent these banks from creating another disastrous period in the economy. When it comes to institutions that are entrusted to control majority of almost everyone's money, there should be regulations in place to make sure that the outcome of how they deal with it is secure. When there is too much freedom, risk will come along, and the risk of another financial crisis will increase. When banks underperform, the economy takes a hit, so these risky investments made by the banks can lead to another era of economical depression which could be prevented by regulations placed such as these two acts.