Glass-Steagall Act

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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banks from gambling away people's life savings for decades -- until Wall Street successfully lobbied to have it repealed in 1999.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.

Please join us in urging Congress to put Wall Street reform back on the table — and pass a new Glass-Steagall Act today.

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.

Thank you,

Elizabeth Warren

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)

112th CONGRESS
1st Session

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

A BILL
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

Link to read the text of the bill


Karolina's picture
Karolina
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Nov. 3, 2011 6:45 pm

Comments

Current List of Congressional Co-Sponsors to Marcy Kaptur's HR1489, listed by date of signing:

• Marcy Kaptur (D - OH), (init.)

James Moran (D-VA)

Walter Jones (R-NC)

John Conyers (D-MI), former Chair, current ranking member House Judiciary Committee, dean of Black Caucus

Jesse Jackson Jr. (D-IL)

Lynn Woolsey (D-CA), former Co-Chair Progressive Caucus

Jim McDermott (D-WA)

Louise McIntosh Slaughter (D-NY), ranking member House Committee on Rules

Edolphus Towns (D-NY), former Chairman of the House Oversight and Government Reform Committee

Maxine Waters (D-CA), former Chair of the Congressional Black Caucus

Marcia Fudge (D-OH)

Kurt Schrader (D-OR)

Danny Davis (D-IL)

Roscoe Bartlett (R-MD)

John Garamendi (D-CA)

Dennis Kucinich (D-OH)

Peter Visclosky (D-IN)

Jan Shakowsky (D-IL)

Barbara Lee (D-Ca), former Chair Congressional Black Caucus, former Co-Chair of the Progressive Caucus

Mike Coffman (R-CO)

George Miller (D-CA), former Chair, current ranking member Education and the Workforce Committee

Hansen Clarke (D-MI)

Fortney Pete Stark (D-Ca)

Michael Capuano (D-MA), ranking member U.S. House financial services Subcommittee on Oversight and Investigations

Rep. Charles Rangel (D-NY), former Chairman of the United States House Committee on Ways and Means

Rodney Alexander (R-LA)

Raul Grijalva (D-AZ), the Co-Chair of the Progressive Caucus

Daniel Lipinski (D-IL)

John F. Tierney (D-MA)

Donna Christensen (D-VI)

Al Green (D-TX)

Bob Filner (D-CA)

Tammy Baldwin (D-WI)

Peter Welch (D-VT)

John Olver (D-MA)

Larry Kissel (D-NC)

Yvette D. Clarke (D-NY)

Chellie Pingree (D-ME)

Michael H. Michaud (D-ME)

Henry C. "Hank" Johnson (D-GA)

Zoe Lofgren (D-CA)

Peter DeFazio (D-OR)

Keith Ellison (D-MN)

Rosa DeLauro (D-CT), House Democratic Steering and Policy Committee (Co-Chair for Steering)

Wm. Lacy Clay (D-MO)

Bennie G. Thompson (D-MS), ranking member Committee on Homeland Security

Loretta Sanchez (D-CA)

John Lewis (D-GA)

Tim Ryan (D-OH)

Collin Peterson (D-MN), ranking member of the Agriculture Committee

David Cicilline (D-RI)

Betty Sutton (D-OH)

Sheila Jackson Lee (D-TX)

Donald M. Payne (D-NJ)

Frederica Wilson (D-FL)

Frank Pallone, Jr. (D-NJ)

John A. Yarmuth (D-KY)

Michael F. Doyle, (D-PA)

Susan Davis (D-CA)

Karolina's picture
Karolina
Joined:
Nov. 3, 2011 6:45 pm

I also want to offer a link to a very good information-graphic explaining the role of Glass-Steagall in US economic history.

The name of the piece is GLASS-STEAGALL How It Works by Chris Jadatz

Karolina's picture
Karolina
Joined:
Nov. 3, 2011 6:45 pm

The information graphic is connected to a whole section titled Restore Glass-Steagall Now that is now dedicated to immediate news and information about Glass-Steagall .

Karolina's picture
Karolina
Joined:
Nov. 3, 2011 6:45 pm

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