They lessened the tensions in the money and capital markets and averted a sharper contraction in credit, thereby braking the deterioration of the monetary policy transmission mechanism. According  19  Martina Cecioni and Giuseppe Ferrero (2012), “Determinants of TARGET2 imbalances”, Banca d’Italia, Questioni di Economia e Finanza (Occasional Papers), No. 136.
For instance, the large presence of major US investment banks in Europe can be traced back to the implementation of this Act, which separated investment banks from commercial banks.