WASHINGTON, D.C. – On the 81st anniversary of the signing of the Glass-Steagall Act of 1933, 162 state and national organizations led by Public Citizen and Americans for Financial Reform today call on the U.S. Senate to restore a wall between ordinary banks and riskier investment banks.
In a letter, the groups ask senators to co-sponsor the 21st Century Glass-Steagall Act (S. 1282), a measure introduced by a bipartisan group including U.S. Sens. Elizabeth Warren (D-Mass.), John McCain (R-Ariz.), Angus King (I-Maine) and Maria Cantwell (D-Wash.). S. 1282 now has nine Senate co-sponsors.
S. 1282 would make the banking system simpler and safer and help bring an end to the era of “Too Big to Fail,” the letter argues. It would do so by requiring the biggest banks to downsize along functional lines and by reducing the opportunities for them to use their government guarantees and subsidies to engage in speculative activities for their own enrichment.