On November 8, 2017, Acting Comptroller of the US Office of the Comptroller of the Currency Keith Noreika questioned the US regulatory requirement for banks to maintain a separation between banking and commerce. Noreika noted that the Glass-Steagall Act was enacted at a time when there were very few banks, distinguishing today's economy where there are many more banks that are subject to a "robust regulatory regime." He suggested that preventing commercial firms from engaging in banking activities has concentrated US banking operations in a few large banks. He reiterated a commonly expressed view that the financial crisis demonstrated that the separation of banking and commerce does not make the financial system inherently safer. Noreika also rebuked calls to reinstate the Glass-Steagall Act, challenging the notion that the separation of commercial banking from investment banking in any way serves the best interest of the financial system and economy.
Acting Comptroller Noreika's speech is available at: https://occ.gov/news-issuances/speeches/2017/pub-speech-2017-134.pdf .
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