IDEAS home Printed from https://ideas.repec.org/a/bla/coecpo/v16y1998i2p185-196.html
   My bibliography  Save this article

Who Needs Glass‐Steagall? Evidence From Israel'S Bank Shares Crisis And The Great Depression

Author

Listed:
  • ASHER A. BLASS
  • RICHARD S. GROSSMAN

Abstract

This paper compares bank share manipulation in Israel with that in the United States prior to the passage of the Glass‐Steagall Act and uses the comparison to assess the desirability of restricting the investment banking activities of commercial banks—not only in the United States and in Israel, but also in the economies in transition (EITs) of Eastern Europe. Many of the techniques of and motivations for manipulation were similar. However, because of their larger relative size, banks in Israel, were far more successful in eliminating market risk. The paper concludes that Glass‐Steagall restrictions could prove a useful policy prescription in Israel, the EITs, and elsewhere in the developing world.

Suggested Citation

  • Asher A. Blass & Richard S. Grossman, 1998. "Who Needs Glass‐Steagall? Evidence From Israel'S Bank Shares Crisis And The Great Depression," Contemporary Economic Policy, Western Economic Association International, vol. 16(2), pages 185-196, April.
    • Handle: RePEc:bla:coecpo:v:16:y:1998:i:2:p:185-196
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1465-7287.1998.tb00511.x
    Download Restriction: no

    References listed on IDEAS

    as
    1. Gande, Amar, et al, 1997. "Bank Underwriting of Debt Securities: Modern Evidence," Review of Financial Studies, Society for Financial Studies, vol. 10(4), pages 1175-1202.
    2. Gregory F. Udell & Paul Wachtel, 1994. "Financial System Design for Formerly Planned Economies: Defining the Issues," Working Papers 94-27, New York University, Leonard N. Stern School of Business, Department of Economics.
    3. Kroszner, Randall S & Rajan, Raghuram G, 1994. "Is the Glass-Steagall Act Justified? A Study of the U.S. Experience with Universal Banking before 1933," American Economic Review, American Economic Association, vol. 84(4), pages 810-832, September.
    4. Bonin, John P. & Leven, Bozena, 1996. "Polish Bank Consolidation and Foreign Competition: Creating a Market-Oriented Banking Sector," Journal of Comparative Economics, Elsevier, vol. 23(1), pages 52-72, August.
    5. Grossman, Richard S., 1994. "The Shoe That Didn't Drop: Explaining Banking Stability During the Great Depression," The Journal of Economic History, Cambridge University Press, vol. 54(3), pages 654-682, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jonathan Marie & Sébastien Charles, 2018. "Comment Israël a évité l’hyperinflation ? Le succès du plan de stabilisation (1985) à la lumière de la théorie post-keynésienne," CEPN Working Papers hal-01937054, HAL.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:coecpo:v:16:y:1998:i:2:p:185-196. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley Content Delivery). General contact details of provider: http://edirc.repec.org/data/weaaaea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.