Petition Closed
Petitioning Representative Spencer Bachus and 22 others

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

762
Supporters

H.R.129 - Return to Prudent Banking Act of 2013 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."

Introduced in House (01/03/2013)

 

* In a nutshell: This bill would prevent banks from gambling with your money. There would be a separation between commercial banks and investment banks, as there was from 1933 to 1999.

Summary

Return to Prudent Banking Act of 2013 - 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.

H.R.129 — 113th Congress (2013-2014)

113th CONGRESS

1st Session

H. R. 129

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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Follow the status of the Bill

Rep. Marcy Kaptur: Reinstate the Glass-Steagall Act

The economy should work for Americans, not just Wall Street CEOs

After Wall Street's 2008 economic collapse led to the Great Recession, it has become evident that to move forward, we must return to the past to ensure a safe, viable financial system for a 21st-century American economy. We must reinstate the Glass-Steagall Act of 1933. Glass-Steagall is not a one-size-fits-all cure for the ills of the financial sector, but it is exactly the type of reform that Congress must implement against the pleas of Wall Street executives. This is why I have introduced H.R. 1489, [called HR 129 in 2013]  the Return to Prudent Banking Act of 2011, which would reinstate Glass-Steagall's separation between commercial banking and the securities business.

[Steve Bartlett: Diversified Banks Are More Stable]

From 1933 until 1999, American financial institutions were barred from acting as any combination of a commercial bank, investment bank, or insurance company. The American financial system was built on confidence and fairness, and it allowed for access to capital, protected consumer accounts, and paid depositors and investors a decent return. From 1933 until 1999, Gross Domestic Product grew from $56.4 billion (in current dollars, according to the U.S. Bureau of Economic Analysis) to $9.3 trillion in 1999. However, as Wall Street gained political and economic influence, Congress passed the Gramm-Leach-Bliley Act, which effectively removed the banking barriers and safeguards that had been in place for more than six decades. We were told by Wall Street and its supporters that banks were "hamstrung by outdated restrictions of the 1930s." I was one of 57 members of the U.S. House of Representatives who would vote against Gramm-Leach-Bliley. As the anti-regulation movement won the day, this legislation was a clear signal that Wall Street was in charge. Banks grew larger and riskier, and American taxpayers were given the bill when the deregulated financial sector fell apart.

In order to move forward, we must not build our financial system around the failed concepts of speculation and manipulation, but around the cornerstones that made it strong: confidence and fairness. Earlier this year, expert witnesses testifying before the House Financial Services Committee correctly stated that, "investor confidence in U.S. equity market structure is perhaps at its lowest point since the Great Depression," and the public believes "that the stock market was 'not generally fair' to small investors." It should be no surprise that consumer confidence is low. The economy may be complex, but Americans understand that the Wall Street banks control an outsized portion of the economy, and that they have an outsized interest in their own profits.

[Read the U.S. News Debate: Does the J.P. Morgan Loss Prove the Need for Tougher Bank Regulations?]

People who share my views are rapidly growing in number. On July 25, 2012, Sandy Weill, the former chairman and CEO of Citigroup, in a major reversal, stated on CNBC: "What we should probably do is go and split up the investment banking from banking, have banks be deposit takers…have banks do something that's not going to risk taxpayer dollars." While these statements came from the former CEO of a firm that was given $45 billion by taxpayers, his words should not be taken without due consideration, irony, and regret. The growing ranks of supporters wanting a return to a better-regulated Wall Street include 78 cosponsors of H.R. 1489. The time is now to implement smart reforms to protect the American economy as well as the American consumer. Congress must act and reinstate Glass-Steagall so the public can be assured that the economy is working for them, not just for Wall Street's CEOs.
Source: http://bit.ly/16OfCvy

The number of Congressional sponsors for HR 129, the "Return to Prudent Banking Act" to reinstate Glass-Steagall, now totals 61 with three new signers joining the bill on May 1, 2013. The three new cosponsors on HR 129 are:

Rep. John Garamendi (D-CA)
Rep. Zoe Lofgren (D-CA)
Rep. Eni Faleomavaega (D-AS)

Congressional Cosponsors to HR-129 (By Date of Signing)

  1. Marcy Kaptur (D-OH)
  2. Walter Jones (R-NC)
  3. Michael Michaud (D-ME)
  4. James McGovern (D-MA)
  5. James Moran (D-VA)
  6. Michael Capuano (D-MA)
  7. Eleanor Holmes Norton (D-DC)
  8. Peter Welch (D-VT)
  9. Lloyd Doggett (D-TX)
  10. David Cicilline (D-RI)
  11. Judy Chu (D-CA)
  12. Daniel Lipinski (D-IL)
  13. George Miller (D-CA)
  14. Collin Peterson (D-MN)
  15. Susan Davis (D-CA)
  16. Louise Slaughter (D-NY)
  17. Elijah Cummings (D-MD)
  18. Loretta Sanchez (D-CA)
  19. Peter DeFazio (D-OR)
  20. Jim McDermott (D-WA)
  21. John Tierney (D-MA)
  22. Rodney Alexander (R-LA)
  23. Chellie Pingree (D-ME)
  24. Janice Schakowsky (D-IL)
  25. Gene Green (D-TX)
  26. Mike Coffman (R-CO)
  27. John Conyers (D-MI)
  28. Robert Brady (D-PA)
  29. Donna Christensen (D-VI)
  30. Alan Grayson (D-FL)
  31. Donald Payne Jr. (D-NJ)
  32. Peter Visclosky (D-IN)
  33. Anna Eshoo (D-CA)
  34. Timothy Walz (D-MN)
  35. Rosa DeLauro (D-CT)
  36. Charles Rangel (D-NY)
  37. Eddie Bernice Johnson (D-TX)
  38. Paul Tonko (D-NY)
  39. Donna Edwards (D-MD)
  40. Bennie Thompson (D-MS)
  41. Barbara Lee (D-CA)
  42. Julia Brownley (D-CA)
  43. Earl Blumenauer (D-OR)
  44. John Dingell (D-MI)
  45. Keith Ellison (D-MN)
  46. Marcia Fudge (D-OH)
  47. Hank Johnson (D-GA)
  48. Michael Doyle (D-PA)
  49. Janice Hahn (D-CA)
  50. Alcee Hastings (D-FL)
  51. Sheila Jackson Lee (D-TX)
  52. Edward Markey (D-MA)
  53. John Yarmuth (D-KY)
  54. Jackie Speier (D-CA)
  55. Grace Napolitano (D-CA)
  56. Danny Davis (D-IL)
  57. Tulsi Gabbard (D-HI)
  58. Kyrsten Sinema (D-AZ)
  59. John Garamendi (D-CA)
  60. Zoe Lofgren (D-CA)
  61. Eni Faleomavaega (D-AS)

 

 

Letter to
Representative Spencer Bachus
Representative Robert Hurt
Representative John Campbell
and 20 others
Representative Mike Fitzpatrick
Representative Bill Posey
Representative Bill Huizenga
Representative Steve Pearce
Representative Sean Duffy
U.S. House of Representatives
U.S. Senate
Representative Michele Bachmann
Representative Jeb Hensarling
Representative Al Green
Representative Kevin McCarthy
Representative Gary Miller
Representative Maxine Waters
Representative Michael Capuano
Representative Blaine Luetkemeyer
Representative Lacy Clay
Representative Patrick McHenry
Representative Gregory Meeks
Representative Carolyn Maloney
President of the United States
I've just signed the petition "Pass the Return to Prudent Banking Act and Restore Glass-Steagall".

I would like to see "H.R. 129: Return to Prudent Banking Act of 2011" pass through committee and onto the floor for a vote. I encourage you to support this bill so that our nation can return to the separation between commercial banking and the securities business, as it was in the Banking Act of 1933, the "Glass-Steagall Act" passed by FDR.