The first thread that I started on Thom's website, was a post to encourage the people here to call their Congress people — to urge members of our Congress to reenact the Glass-Steagall Act, to let them know that it has to be word-for-word the Glass-Steagall text, and that "a new bill in Glass-Steagall's place" (i.e. the Volcker rule or the Dodd-Frank bill) is inadequate to start repairing our economy.
Apparently due to the J.P.Morgan loss of 2 billion in 2 weeks, Elizabeth Warren also sees the need to bring back Glass-Steagalll. For those of you who did not get this e-mail, I am passing it on to you.
Quote Elizabeth Warren:We’ve seen all the headlines: JP Morgan Chase took risky bets and lost two billion dollars in a matter of weeks.
CEO Jamie Dimon called the bets “poorly reviewed" and even "sloppy." He added, "We will learn from it, we will fix it, and we will move on."
Frankly, I don’t think we should just trust Wall Street banks to regulate themselves. Because as we learned during the 2008 financial crisis, they are not just taking risks with their own money -- they are taking risks with the whole economy.
That's why today, with the Progressive Change Campaign Committee, I'm calling on Congress to put Wall Street reform back on the agenda and to begin by passing a new Glass-Steagall Act. This was the law that stopped investment banks from gambling away people's life savings for decades -- until Wall Street successfully lobbied to have it repealed in 1999.
Will you join us in calling on Congress to hold Wall Street accountable and pass a new Glass-Steagall Act?
A new Glass-Steagall would separate high-risk investment banks from more traditional banking. It would allow Wall Street to take risks, but not by dipping into the life savings and retirement accounts of regular people.
And by making banks smaller, a new Glass-Steagall could also help put an end to banks that are "too big to fail" -- further avoiding costly taxpayer bailouts.
Wall Street's risky bets nearly brought the economy to its knees in 2008. But instead of taking responsibility, Wall Street lobbied to water down the Dodd-Frank financial reforms of 2010 and fought to weaken the reforms Congress passed.
It has become clear over time — and made even clearer this past week — that additional Wall Street reforms are needed.
Thousands of Progressive Change Campaign Committee members have stood with me in my campaign for the Senate -- and many were with me before that when I was fighting for the Consumer Financial Protection Bureau. I thank you from the bottom of my heart.
If I'm elected to the U.S. Senate from Massachusetts, I promise this difference from my Republican opponent Scott Brown: I will be a reliable and strong champion for commonsense Wall Street reform. But we don't have a moment to waste.
Together, we must urge Congress to act now.
Yesterday, I tried to post the entire Glass-Steagall Text as it appears in H.R.1489 Introduced in House—but that was apparently a bad idea, as trying with the whole bill broke yesterday's "Glass-Steagall" thread.
Here I will just post the introduction and a link to the text of the bill:
H.R.1489 - Return to Prudent Banking Act of 2011
(Introduced in House - IH)
IN THE HOUSE OF REPRESENTATIVES
Ms. KAPTUR (for herself, Mr. MORAN, and Mr. JONES) introduced the following bill; which was referred to the Committee on Financial Services
To repeal certain provisions of the Gramm-Leach-Bliley Act and revive the separation between commercial banking and the securities business, in the manner provided in the Banking Act of 1933, the so-called `Glass-Steagall Act', and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled