Glass-Steagall is the indispensible first step to global economic recovery. It will immediately hault the onset of hyperinflation, remove government committment from toxic debts, end too-big-to-fail, and force separation of commercial banking functions from investment banking functions.
Legislation to Restore Glass-Steagall, “The Return to Prudent Banking” Act, was introduced into the 112th congress as HR1489. It garnered massive institutional support and 84 co-sponsors in the house of representatives. “The Return to Prudent Banking” Act has been re-introduced in the 113th Congress as HR-129.
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.
This video captures Policy Committee member Michael Steger in Sacramento, California addressing one of the several press conferences LaRouchePAC is holding simultaneously this week in state capitols across the nation.
We quote his statement:
The following declaration was delivered to the U.S. today from Butch Valdes of the Philippine LaRouche Society, founder of the "Save the Nation" Movement, on behalf of that Movement:
The level of LaRouchePAC activity in the state legislatures during the National Glass-Steagall Week of Action surpassed by a significant margin any previous week in LPAC's growing mobilization. Here's a sketch to get the sweep of the state activity in one place:
On Kerry's Tuesday Moscow agreement to cosponsor negotiations between the Assad government and the Syrian "rebels," economist Lyndon LaRouche noted on Thursday that the Kerry behavior in Moscow is a likely reflection of the fact that even the British know that Obama is going down and will adjust accordingly.
Former Massachusetts Congressional candidate, Rachel Brown and LaRouchePAC organizer, Jennifer Kreingold are joined by activist Arleen Martino reporting from Boston, MA on the activity at the Boston Statehouse to reinstate Glass-Steagall.
LaRouchePAC organizer, Tim Luke of South Dakota, delivers an on the ground report from Nebraska on the progress of a Glass-Steagall resolution in the Lincoln State House. He is joined by a team of activists including Jeannie Hanson (SD); rancher and organizer, Ron Wieczorek (SD); former state senator and NASA engineer, Ron Eret (NE); and symphony conductor and musician, Tom Widlar (NE).
Dave Christie reports from Seattle, WA, on the rally held outside of the Seattle Federal building, and the push for Glass-Steagall internationally.
'They were shocked and awed" were the words of one Virginia based LaRouchePAC activist who participated in Wednesday's Day of Action on Capitol Hill. And he was right. The second intense day of LaRouhePAC organizing of Congress was even more effective than Tuesday's effort, and the cumulative impact of all of the organizing will truly hit Congress and the country like a shock front.
LaRouchePAC has received appeals from over a dozen parliamentarians, individuals, as well as political and social groupings internationally which we are currently using to mobilize members of Congress and expand their sense of responsibility to restore Glass-Steagall for the U.S. and the world. In addition to those appeals we have received the following reports from Spain and Mexico:
Congress returned to Washington on Tuesday to be greeted by a large LPAC delegation from Connecticut, New York, New Jersey, Maryland, North Carolina, Georgia, Louisiana, Florida, and Massachusetts. The Baltimore-led delegation alone met with 11 House offices and 10 Senate offices. Throughout the day, LPAC organizers had impromptu sessions with Congressmen and Senators.