Summary

To repeal certain provisions of the Gramm-Leach-Bliley Act and revive the separation between commercial banking and the securities business, in the manner provided in the Banking Act of... Read More

Status

This bill was introduced on Apr 12, 2011, in a previous session of Congress, but was not passed.

Date Introduced
Apr 12, 2011

Co-Sponsors

r-4
d-79
i-1

Bill Text

A BILL

To repeal certain provisions of the Gramm-Leach-Bliley Act and revive the separation between commercial banking and the securities business, in the manner provided in the Banking Act of 1933, the so-called ``Glass-Steagall Act'', and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Return to Prudent Banking Act of 2011''.

SEC. 2. GLASS-STEAGALL REVIVED.

(a) Wall Between Commercial Banks and Securities Activities Reestablished.--Section 18 of the Federal Deposit Insurance Act (12 U.S.C. 1828), as amended by section 615(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, is amended by adding at the end the following new subsection: ``(aa) Limitations on Security Affiliations.-- ``(1) Prohibition on affiliation between insured depository institutions and investment banks or securities firms.--An insured depository institution may not be or become an affiliate of any broker or dealer, any investment adviser, any investment company, or any other person engaged principally in the issue, flotation, underwriting, public sale, or distribution at wholesale or retail or through syndicate participation of stocks, bonds, debentures, notes, or other securities. ``(2) Prohibition on officers, directors and employees of securities firms service on boards of depository institutions.-- ``(A) In general.--An individual who is an officer, director, partner, or employee of any broker or dealer, any investment adviser, any investment company, or any other person engaged principally in the issue, flotation, underwriting, public sale, or distribution at...

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State: CA

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Organizations Supporting

Dear Representative, As President of the International Federation of Professional and Technical Engineers (IFPTE), I am writing to ask that you cosponsor House Resolution 1489 (HR 1489), The Return to Prudent Banking Act. This legislation, which is sponsored by Congresswoman Marcy Kaptur, will provide concrete protections to American families by reinstating the Glass-Steagall Act. Unfortunately, tens of millions of American workers are continuing to suffer due to no fault of their own. The reported unemployment rate remains steady at 9.1%, which is actually much rosier than the reality on the ground. When you consider the many people that have either stopped looking for work or are underemployed, workers and their families in our country continue to experience great hardships – with few signs of hope on the horizon. As ironic as it seems, the very banking industry that brought our economy to its knees has not suffered much at all. In fact, as a reward for causing our national economy to spiral from within a step of an actual depression, leading to millions of Americans losing their jobs and homes, Congress rewarded Wall Street in 2008 with a taxpayer funded bailout in the amount of $700 billion. Now, just four in a half years after the housing bubble burst, when the subprime industry began its collapse, it is back to business as usual for the Wall Street bankers—all with little oversight. Contrarily, in 1933 Congress responded to the Great Depression by passing the Glass-Steagall Act. The new law, known at the time as The Federal Banking Act of 1933, regulated private sector mortgage lending by separating commercial banking from investment and speculative banking. Glass-Steagall was the law of the land until 1998 when Congress essentially eliminated these prudent mortgage lending practices by passing the Leach-Bliley bill. That legislation lifted the Glass-Steagall requirement that commercial banks and investment banks remain separate, allowing banks to expand into other ventures, including speculation and insurance. It created a ripe environment for what led to the housing bubble, its eventual collapse, the so-called ‘Great Recession’, and the continued suffering of tens of millions of unemployed workers who have lost jobs and their homes. Banks that were “too big to fail,” not only failed, but took down middle class working families in the process. IFPTE realizes that the 111th Congress attempted to regulate Wall Street and the banks through the Dodd/Frank bill. We appreciate those efforts. However, much bolder action is required, which is why IFPTE supports HR 1489. We believe that this legislation is a huge step in the right direction in protecting the American public from Wall Street run amuck. http://www.ifpte.org/news/details/Support-HR-1489-The-Return-to-Prudent-Banking-Act

Calling Upon Congress to Enact HR 1489, The Resolution of Glass Steagall WHEREAS, the League of United Latin American Citizens is this nation’s oldest and largest Latino organization, founded in Corpus Christi, Texas on February 17, 1929; and WHEREAS, LULAC throughout its history has committed itself to the principles that Latinos have equal access to opportunities in employment, education, housing and healthcare; and WHEREAS, in response to the Great Depression of the1930's, the Congress enacted the Federal Banking Act of 1933, known as the Glass-Steagall Act, that separated commercial banking from investment and speculative banking; and WHEREAS, the Glass-Steagall Act successfully protected American citizens and jobs from 1933-1999, when it was repealed, which then allowed commercial banks to move into investment banking, insurance and other speculative enterprises, creating banks that became "too big to fail;" and WHEREAS, financial bubbles were created over the past decade in the tens of trillions of dollars, that collapsed over the last three years, creating hardship and suffering for communities around the nation; and WHEREAS, Wall Street has been bailed out with tens of trillions of dollars of taxpayer money, but Main Street is in a state of ever deepening job loss and crisis; and WHEREAS, HR 1489, THE RETURN TO PRUDENT BANKING, AND RESTORATION OF GLASS STEAGALL has been introduced into the Congress with 17 sponsors, both Democrats and Republicans; and has been endorsed by the AFL-CIO, the Machinists Union, city councils and state legislators around the nation; and THEREFORE BE IT RESOLVED, that LULAC, meeting in convention in Cincinnati, Ohio, in July 2011, hereby endorses HR 1489, and calls upon members of Congress to co-sponsor and enact HR 1489, to restore the protections of the Glass-Steagall Act. http://lulac.org/advocacy/resolutions/2011/resolution_Calling_Upon_Congress_to_Enact_HR_1489_The_Resolution_of_Glass_Steagall/

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Bill Summary

To repeal certain provisions of the Gramm-Leach-Bliley Act and revive the separation between commercial banking and the securities business, in the manner provided in the Banking Act of 1933, the so-called “Glass-Steagall Act”, and for other purposes.

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