The primary outcome of the Glass-Steagall Act in the financial sector was the separation of commercial and investment banking. Enacted in 1933 during the Great Depression, it aimed to restore public confidence in the banking system by reducing speculative risks and conflicts of interest that had contributed to the financial collapse. The act prohibited banks from engaging in both the acceptance of deposits and the underwriting of stocks and bonds. Over time, parts of the Glass-Steagall Act were repealed, leading to concerns about financial stability and contributing to issues observed during various economic crises in the late 20th and early 21st centuries.