ABSTRACT
Thus far we have discussed the “finance-as-servant” proposition and its relationship to the blending of commercial and investment banking with minimal reference to the historical and institutional context of the US financial sector prior to the passage of the New Deal banking reforms. From the many years of financial history that preceded the 1930s and the many complex institutional considerations that the distinguish American financial sector, this chapter highlights a few factors that informed New Dealers decision to make the separation of commercial and investment banking the centerpiece of their financial reform project.
