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"The flow of funds through the hands of the general public into those of the corporations, and from the latter into the hands of brokers and dealers, who then re-lent the funds to the public engaged in speculation, was thus primarily the result of a loose banking policy which had turned from the making of loans on commercial paper to the making of loans on security."—From the Senate Report on the Glass-Steagall Act, 1933Which of the following statements does the excerpt support? That investors knew what they were doing was illegal That the government failed to recognize danger signs That nothing could be done to stop the stock market crashThat there needed to be regulation of the banking industry
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