1980 Depository Institutions Deregulation and Monetary Control Act of 1980 requires the Fed to price its financial services available to all depository institutions and establishes reserve requirements for all eligible financial institutions. Banks, with the blessing of the Fed and the OCC, begin testing discount stock brokerage. The Merrill Lynch Cash Management Account and NOW accounts, offering interest on checking account balances, are created. 1982 Depository Institutions Act, also known as the Garn-St Germain Act, deregulates some activities of banks and nonbank banks while prohibiting insurance activities of banks. New money market deposit accounts are permitted.
Regional compacts begin occurring.
ICI v. Conover cases result in ruling that commingled funds for IRAs are not mutual funds and thus do not violate Glass-Steagall. Citicorp requests the Fed's permission to establish a holding company subsidiary to underwrite and deal in bank-eligible securities. The request is rejected but results in the first approvals of Section 20 subsidiaries, that is subsidiaries of bank holding companies defined in Glass-Steagall, three years later. The U.S. Supreme Court upholds regional interstate compacts. The OCC claimed these activities were permissible under a 1916 amendment to the National Banking Act.