This Day in Legal History: Glass-Steagall Signed
On June 16, 1933, President Franklin D. Roosevelt signed the Banking Act of 1933 into law—a pivotal piece of Depression-era legislation better known by the names of its congressional architects: Senator Carter Glass and Representative Henry Steagall. The law’s timing was not accidental; it came just months after the catastrophic banking failures that had shuttered thousands of banks and evaporated public trust in the financial system. At its core, the act sought to restore that trust through structural reform, not just emergency patchwork.
The most well-known feature of the law was the creation of the Federal Deposit Insurance Corporation (FDIC), which for the first time guaranteed Americans’ bank deposits up to a set amount. This singular policy innovation helped stem the tide of bank runs and brought stability to the retail banking sector almost overnight.
But the law went further. In what became known as the Glass–Steagall provisions, it imposed a formal separation between commercial banking and investment banking. The rationale was simple: banks that take deposits and issue loans should not also be speculating in stocks, bonds, or other risky assets. The aim was to curtail the kind of speculative behavior that had, in part, fueled the 1929 crash.
This firewall between different banking functions endured for decades, until its gradual erosion and eventual repeal under the Gramm-Leach-Bliley Act of 1999. Critics of deregulation would later argue that dismantling Glass–Steagall helped set the stage for the 2008 financial crisis.
So, why does June 16 matter? Because it marks the day Congress decided that the rule of law—not just market forces—would govern American finance. It’s a reminder that even in moments of deep economic despair, institutional design and legislative action can restore public confidence. The legacy of the 1933 Banking Act lives on every time someone deposits a paycheck without worrying if their bank will still be open next week.
President Donald Trump has ordered a major escalation in deportation operations by Immigration and Customs Enforcement (ICE), targeting the largest U.S. cities like Los Angeles, Chicago, and New York. The initiative, described by Trump as the "single largest Mass Deportation Program in History," comes amid widespread protests and legal opposition. Trump framed the policy as necessary to remove "millions" of undocumented migrants but also pledged to soften its impact on sectors like agriculture and hospitality, which rely heavily on immigrant labor.
ICE is now arresting roughly 2,000 undocumented individuals daily, a significant increase from the Biden administration's rates. Trump aide Stephen Miller has pushed for even higher daily arrests, aiming for 3,000. This surge coincides with a drop in the number of foreign workers, contributing to an overall labor force decline.
In response to protests—particularly in Los Angeles—Trump deployed National Guard troops and up to 700 active-duty Marines to secure federal property, sparking backlash from local leaders. California Governor Gavin Newsom has sued the administration, challenging the legality of the troop deployment. A federal appeals court is currently reviewing a lower court’s restriction on the National Guard’s use.
Trump Orders ICE to Expand Deportations in Largest US Cities
Senate Republicans are preparing to unveil their draft of President Trump’s sweeping $3 trillion economic package, aiming for passage by Independence Day. But one key detail remains conspicuously unresolved: the state and local tax (SALT) deduction cap.
The draft, expected Monday, reflects weeks of intraparty negotiation. Finance Committee Chair Mike Crapo has been trying to thread the needle between budget hawks, business-friendly Republicans, and clean energy holdouts. While the bill includes permanent extensions of key Trump-era business tax cuts—like R&D deductions, interest expensing, and full depreciation—the SALT cap remains a political landmine.
The House version, passed earlier this year, raised the SALT cap to $40,000 in a bid to placate Republicans from high-tax states like New York, New Jersey, and California. Senate GOP leaders, by contrast, are floating either retaining the $10,000 cap or leaving it blank for now. Majority Leader John Thune admitted there’s little appetite among senators from low-tax states to raise it.
The SALT cap is more than a tax policy footnote—it’s a litmus test for how seriously Republicans take their own rhetoric on fiscal responsibility. Repealing or expanding the cap would disproportionately benefit wealthy households in blue states while blowing a hole in federal revenues. It’s a strange hill for a so-called “populist” party to die on.
House Speaker Mike Johnson is pressuring the Senate to keep the $40,000 cap, warning that anything less could tank the bill in the House. It’s a delicate dance between appeasing suburban Republicans and not torching whatever remains of fiscal conservatism.
Meanwhile, energy companies are watching closely to see how the bill handles the phase-out of clean energy credits. Foreign investors are lobbying against the "Section 899 revenge tax," and Medicaid work requirements face their own internal friction. States may not be ready to implement them, and pushback is mounting over penalizing low-income parents.
Senate to Unveil Trump Tax Bill Draft With SALT Fight Unresolved
A federal judge in Boston is weighing whether to block President Trump’s latest move to bar foreign nationals from studying at Harvard University, as part of a broader legal fight over immigration, education, and executive power.
The administration’s proclamation—signed earlier this month—cites national security concerns and temporarily suspends the entry of international students bound for Harvard. It also directs the State Department to consider revoking visas for those already enrolled. The measure follows Homeland Security Secretary Kristi Noem’s earlier attempt to strip Harvard’s certification to host international students, which the court temporarily blocked.
Harvard, which counts nearly 6,800 international students (about 27% of its student body), argues that the Trump administration is engaging in unconstitutional retaliation. The university claims it’s being punished for resisting White House efforts to control its governance, curriculum, and ideological direction—an alleged violation of First Amendment protections.
Trump’s proclamation, and the broader freeze on $2.5 billion in Harvard funding, mark an unprecedented federal offensive against the country’s oldest and wealthiest university. Harvard is now seeking a broad injunction to protect its ability to host foreign students while its lawsuits proceed.
The Justice Department, for its part, is asking the court to treat Trump’s proclamation separately from Noem’s earlier actions, arguing it rests on different legal grounds and doesn't expel current students—at least not yet.
The outcome of today’s hearing could have profound implications, not just for Harvard, but for how far a sitting president can go in leveraging immigration law to reshape higher education.
Harvard to urge judge to bar Trump from closing doors for international students | Reuters
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