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 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.
Quick update from the first day of organizing on Capitol Hill with S. 985, the Senate bill to restore FDR's Glass-Steagall.
The following text is available as a leaflet on the Organize page.
The U.S. Senate now has a companion Glass-Steagall bill! Sen. Tom Harkin (D-IO) introduced S. 985 on May 16th. Call your senators today, contact LaRouchePAC for further marching orders. Distribute and email the press release.
The Regional Assembly of Tuscany (Toscana) yesterday approved a resolution calling for a "Banking and Legal Reform According To the Glass-Steagall Act." The resolution was introduced on May 10, 2013, by Gabriele Chiurli and was approved by all ayes, with only one abstention.
Click here for marching orders to restore Glass-Steagall.
Two leaders of the financial elite warned on May 14th of the collapse of the entire western financial system.
PARIS (Nouvelle Solidarité) — Whereas each and every other political party in France, despite high-sounding speeches, have given up the fight against the financial oligarchy and submitted to the banking lobby's "banking reform," Solidarité & Progrès, the political party founded by former Presidential candidate Jacques Cheminade, just released on May 14th its [url:"www.solidariteetprogres.org/mobil
Former U.S. Senator Ted Kaufman (D-Del.) published a signed op-ed in today's edition of Forbes online, repeating his call for the reinstatement of Glass-Steagall. His remarks were drawn from his speech at the American Enterprise Institute several weeks ago, when he appeared with Thomas Hoenig.