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NCSL to Consider Supporting 21st Century Glass-Steagall Act

August 13, 2014

The National Conference of State Legislatures (NCSL) on August 20 will consider a resolution supporting the reenactment of the 1933 Glass-Steagell Act, which was repealed in 1999. The 21st Century Glass-Steagall Act (S. 1282) was introduced in the Senate by lead sponsor Sen. John McCain (R-Ariz.); companion legislation has been introduced in the House (H.R. 129, H.R. 3711).

The 21st Century Glass-Steagall Act would reinstate the separation of commercial and investment banking functions; and prohibit commercial banks and bank holding companies from investing in stocks, underwriting securities or investing in or acting as guarantors to derivatives transactions.

“Since core provisions of the Glass-Steagall Act were repealed in 1999, shattering the wall dividing commercial banks and investment banks, a culture of dangerous greed and excessive risk-taking has taken root in the banking world,” said Sen. McCain. “Big Wall Street institutions should be free to engage in transactions with significant risk, but not with federally insured deposits.” State resolutions urging Congress to reenact Glass-Steagall have been introduced in 27 states.

NCSL Resolution Supporting Glass-Steagall
Bipartisan Group of Senators Introduce Glass-Steagall (PIA 6/16/13)

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