GLASS-STEAGALL LEGISLATION - NEED NOW TO SAVE OUR NATION
Glass-Steagall is the indispensable first step to global economic recovery. It will immediately halt the onset of hyperinflation, remove government commitment from bailing out toxic debts, end too-big-to-fail banks, and force a separation of commercial banking functions from investment banking functions.
Legislation to restore Glass-Steagall, “The Return to Prudent Banking Act of 2011”, was introduced into the 112th Congress and garnered massive institutional support and 84 cosponsors in the House of Representatives.
On January 3rd, 2013 “The Return to Prudent Banking” Act was re-introduced by Rep. Marcy Kaptur (D-OH) in the 113th Congress as H.R. 129. And on May 16, 2013 a matching bill was introduced into the Senate by Sen. Tom Harkin (D-IA) as S. 985.
How It Works
Since 1999, banks have been allowed to use commercial deposits and assets as fuel for securities trading on the derivatives market.
Because commercial and speculative assets are so heavily co-mingled, the government is forced to protect the assets of banks making risky bets through near perpetual bailouts and purchasing of toxic debt.
It was the derivatives bubble that blew up the system and bankrupted the US banks in the 2007-2008 crash.
1. Commercial Banking institutions have one year to divest themselves of all non-commercial banking units, with no cross management or ownership between commercial and non-commercial units.
2. Commercial Banks are barred from using more than 2% of its capital for the creation, sale, or distribution of securities (certain bank-qualified securities are exempted)
3. Prevents Commercial Banks from loaning their commercial deposits into such vehicles as would support the creation and circulation of securities.
4. No securities of low or potentially low value can be placed by a bank into its insured commercial bank units.
* Adds provision stating Glass-Steagall is the preeminant regulator of the banks, limiting banks from putting its depositors and shareholders at risk.
Glass-Steagall forces separation of commercial from investment banks, it ends Too Big To Fail, bars government bailouts, and will stop the onset of hyperinflation.
Congressional Cosponsors to HR-129 (By Date of Signing)
1. Marcy Kaptur (D-OH)
2. Walter Jones (R-NC)
3. Michael Michaud (D-ME)
4. James McGovern (D-MA)
5. James Moran (D-VA)
6. Michael Capuano (D-MA)
7. Eleanor Holmes Norton (D-DC)
8. Peter Welch (D-VT)
9. Lloyd Doggett (D-TX)
10. David Cicilline (D-RI)
11. Judy Chu (D-CA)
12. Daniel Lipinski (D-IL)
13. George Miller (D-CA)
14. Collin Peterson (D-MN)
15. Susan Davis (D-CA)
16. Louise Slaughter (D-NY)
17. Elijah Cummings (D-MD)
18. Loretta Sanchez (D-CA)
19. Peter DeFazio (D-OR)
20. Jim McDermott (D-WA)
21. John Tierney (D-MA)
22. Rodney Alexander (R-LA)
23. Chellie Pingree (D-ME)
24. Janice Schakowsky (D-IL)
25. Gene Green (D-TX)
26. Mike Coffman (R-CO)
27. John Conyers (D-MI)
28. Robert Brady (D-PA)
29. Donna Christensen (D-VI)
30. Alan Grayson (D-FL)
31. Donald Payne Jr. (D-NJ)
32. Peter Visclosky (D-IN)
33. Anna Eshoo (D-CA)
34. Timothy Walz (D-MN)
35. Rosa DeLauro (D-CT)
36. Charles Rangel (D-NY)
37. Eddie Bernice Johnson (D-TX)
38. Paul Tonko (D-NY)
39. Donna Edwards (D-MD)
40. Bennie Thompson (D-MS)
41. Barbara Lee (D-CA)
42. Julia Brownley (D-CA)
43. Earl Blumenauer (D-OR)
44. John Dingell (D-MI)
45. Keith Ellison (D-MN)
46. Marcia Fudge (D-OH)
47. Hank Johnson (D-GA)
48. Michael Doyle (D-PA)
49. Janice Hahn (D-CA)
50. Alcee Hastings (D-FL)
51. Sheila Jackson Lee (D-TX)
52. Edward Markey (D-MA)
53. John Yarmuth (D-KY)
54. Jackie Speier (D-CA)
55. Grace Napolitano (D-CA)
56. Danny Davis (D-IL)
57. Tulsi Gabbard (D-HI)
58. Kyrsten Sinema (D-AZ)
59. John Garamendi (D-CA)
60. Zoe Lofgren (D-CA)
61. Eni Faleomavaega (D-AS)
62. Frederica Wilson (D-FL)
63. Tim Ryan (D-OH)
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Senate Cosponsors to S. 985 (By Date of Signing)
1. Tom Harkin (D-IA)
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