Started with the boom and crash, when profits increased, people stopped taking

loans and investment thorugh loans decreased, banks also started investing in
securities to maintain their profit, since the returns were high.
After crisis, returns decreased, people tend to take their money out from banks.

Commercial banks were investing in stock markets and other securities with the help
of depositor's money. Hence, to prevent commercial banking from investing in risky
assets with depositor's money, Glass suggested seperation of investment and
commercial banks.

PRO GLASS
-Moral hazard because with the introduction of FDIC, banks tend to take more risk
and it would create more pressure on the FDIC.(solution- put cap on investment in
security for commercial banks)
-Glass wanted govt to focus more on saving market(by funding industries,mills etc.)
rather than saving banks with the help of tax income, hence by seperating
commercial banks and investment banks, commercial banks will focus more on lending
with the help of depositer's money rather than investing in securities. Hence,
seperation was solving Glass' issue.
-Priority should be given to stability of commercial banking, which will finance
people to increase their spending, which can stimulate market and industries and as
a result investing activity can be brought back to healthy state.
-Repealing of GSA resulted in 2008 crisis.
-Profit on risky securities from depositors' money were benefiting bank managers
and not depositors.
-Unemployment

ANTI GLASS
-Foreign Banks were allowed to do both investing and commercial activities. Hence,
they were lending at lower rates and were risking depositor's money.