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, thus cleaning up the nation's banking system to make way for real, long-term investments.

There are now two bills in each house calling for the restoration of President Roosevelt's 1933 Glass-Steagall law. H. R. 129 & its Senate companion bill S. 985, introduced by Rep. Marcy Kaptur and Senator Tom Harkin respectively, and most recently, S. 1282, known as the "21st Century Glass-Steagall Act," championed by Senator Elizabeth Warren, whose companion House bill, H.R. 3711 was recently introduced on December 11, 2013.

LATEST

Sen. Elizabeth Warren (D-MA) stated in a public meeting in Massachusetts last week that when Congress reconvenes (Monday), she and others would begin a major push to pass Glass-Steagall...

The Seattle Times published an opinion column yesterday by former Wall Street banker and anti-Wall Street author Nomi Prins, entitled "Break the Alliances Between Wall Street and the White House."

  • January 2014 - Alabama | House Resolution 75 introduced by Rep. Tom Jackson.
  • April 2013 -Alabama House of Representatives passed, by acclamation, HJR 121 urging Congress to restore Glass-Steagall.
    • January 2014 - Alabama | House Resolution 75 introduced by Rep. Tom Jackson.
    • April 2013 -Alabama House of Representatives passed, by acclamation, HJR 121 urging Congress to restore Glass-Steagall.

    In Louisiana, State Representative Katrina Jackson, the head of the Black Caucus, has introduced House Concurrent Resolution NO. 83 into the State House of Representatives, calling on Congress to pass Franklin Roosevelt's Glass-Steagall legislation.

    And in Colorado...

    The Guardian today reports that newly released documents from the Clinton presidential library show that the repeal of FDR's 1933 Glass-Steagall law "was aggressively pushed by advisers to Bill Clinton who have also been at the heart of current White House policy-making."

    Glass-Steagall sponsor Sen. Elizabeth Warren's new memoir, A Fighting Chance, is creating a political buzz, even before its release next Tuesday, and her six-week national book tour which is to follow, starting in Cambridge, Boston, and Springfield, Massachusetts, and then heading on to New York, Chicago, Los Angeles, Seattle, and Portland.

    Texas Democratic Senate pre-candidate Kesha Rogers' organizing trip this past weekend to El Paso, a city of nearly 680,000, caught the attention of El Paso's largest English and Spanish-language newspapers.

    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 comingled, 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 vehicals 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.