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How did two bank laws actually create financial crises?

How did two bank laws actually create financial crises?

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Answer #1

1. Glass steagall act- glass-steagall Act was one of the major reason for the financial crisis in United States of America in 2008 because it led to a lot of betting approach of the bank in theWall Street and they were exposed to a high risk and their exposure was not limited so that led to a collapse when there was an economic downturn and Bank not able to fulfill with their applications.

2. Garn St.german act can also be accredited with the cause of financial crisis because this act allowed S&L to engage in range of commercial banking activities.it help them to take additional list but it did not introduce any measure in order to control their exposure so they can also be accredited with a lot of causes related with financial crisis.

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