Pass the Return to Prudent Banking Act and Restore Glass-Steagall

The Issue

H.R. 1489: Return to Prudent Banking Act of 2011 Sponsor: Rep. Marcy Kaptur [D-OH9]

This bill will: " ... 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."

This bill is currently in the House Committee on Financial Services. We must urge committee members to bring this bill to the floor for a vote well before the elections in November. It would be beneficial if this became a campaign issue as it might stand a better chance of making it out of committee and eventually passing.

This petition targets committee members as well as the President and your representatives in the House and the Senate. They will receive an email from you as soon as you sign. You may edit the letter according to your needs.

There are a number of co-sponsors for this bill, (scroll down to see them). One of which is Rep. Dennis Kucinich, most of us trust his judgment on such matters.

The following summary was written by the Congressional Research Service, a well-respected nonpartisan arm of the Library of Congress. READ FULL TEXT

4/12/2011--Introduced.

Return to Prudent Banking Act of 2011 - Amends the Federal Deposit Insurance Act (FDIA) to prohibit an insured depository institution from being an affiliate of any broker or dealer, investment adviser, investment company, or any other person or entity engaged principally in the issue, flotation, underwriting, public sale, or distribution of stocks, bonds, debentures, notes, or other securities. Prohibits officers, directors and employees of securities firms from simultaneous service on the boards of depository institutions, except in specified circumstances. Requires any such individual serving as an officer, director, employee, or other institution-affiliated party of any insured depository institution to terminate such service as soon as practicable after enactment of this Act. Requires an insured depository institution to wind-down in an orderly manner and terminate any affiliation prohibited by this Act. Amends the Banking Act of 1933 (Glass-Steagall Act) to expand its prohibition against the transaction of banking activities by securities firms. Declares that Congress ratifies the interpretation by the Supreme Court of specified statutory language in the case of Investment Company Institute v. Camp ( ICI vs. Camp) regarding permissible activities of banks and securities firms. Declares that the reasoning of the Court in that case shall continue to apply to the limitations placed upon security affiliations under the FDIA as enacted by this Act. Prohibits a federal banking agency or federal court from issuing an interpretation regarding such security affiliations that is narrower than that of Court in ICI vs. Camp. Makes technical and conforming changes to the Gramm-Leach-Bliley Act, the Revised Statutes of the United States, and specified federal law. Requires the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, or another appropriate federal banking agency to report to Congress a detailed description of the basis for its decision each time it makes a determination or grants an extension concerning an affiliation between insured depository institutions and investment banks or securities firms.

CO-SPONSORS

Jenni SiriPetition StarterI'm interested in most Progressive/Liberal issues. I'm particularly concerned about campaign finance reform and the horrendous decision that the Supreme Court made in January of 2010. The Citizens United vs. FEC ruling opened the floodgates for unlimited corporate and 'secret' campaign funding. This is very bad for liberals and our causes because corporations give far more to conservatives because they tend to favor the free market and little regulations. I support the repeal of DADT, The Dream Act, Nearly all environmental causes, animal protection, Civil and Human Rights issues, Labor Rights and a host of other liberal and progressive issue.