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This led the government to step up the(3) regulation of banks, to protectdepositors' funds, and to maintain investors' confidence in the banking system. In 1933 the Glass-Steagall Act was passed, which(4) prohibiled American commercial banksfrom underwriting securities. Only investment banks could issue stocks for corporations. In Britain too, retail or commercial banks remained separate from investment or merchant banks. A similar law was passed in Japan after World War II.
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