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.
Sen. William P. Soules (D) introduced a Glass-Steagall Memorial Resolution into the New Mexico Senate yesterday, Senate Memorial 37. Its preface "urg[es] the New Mexico congressional Delegation in Washington, D.C., to support efforts to reinstate separation of commercial and investment banking functions in effect under the Banking Act of 1933."
The timing of the British/Republican Party/Al Gore treason against the US in the 1998-99 attempted coup, through the impeachment of President Clinton...
Alabama State Rep. Tom Jackson (D-68th District) introduced a resolution into the Alabama House of Representatives on Wednesday, H.R. 75, urging the U.S. Congress to pass Glass-Steagall. The Jackson Resolution is the first to name and urge support for all four Glass-Steagall bills now introduced into the U.S. Congress: H.R. 129, the Return to Prudent Banking Act, introduced by Reps.
EIR has learned that the City Council of Montevarchi (Arezzo) unanimously approved a Glass-Steagall motion on Dec. 20, 2013. The motion was organized by Movisol activist Leo Magrini and was introduced by Council members Cristina Bucciarelli and Luciano Bucci.
Eight Congressmen added their names as sponsors to HR 3711, the 21st Century Glass-Steagall Act of 2103...
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.