Today, Congressman John D. Dingell (D-MI12) commended the work of Senator Elizabeth Warren (D-MA) in introducing the 21st Century Glass-Steagall Act of 2013, legislation to end banks' ability to engage in risky behavior and re-instate the firewall between investment banks and depository institutions.
"This much-needed, common sense legislation would bring back basic order and accountability to an industry that has long gone off the rails when it comes to risk and responsibility," said Dingell. "Senator Warren's legislation will help reduce the size of banks, end the reckless act of banks gambling in our derivative markets, and in general go a long way toward ending the risk of bloated banks having their way with the financial security of the American people. Her bill is a logical complement to the Dodd-Frank Act, and I commend Senator Warren for her efforts on this important matter."
The legislation would repeal the 1999 Gramm-Leach-Bliley Act and reinstate the Banking Act of 1933, commonly known as Glass-Steagall.
Dingell lead opposition to Gramm-Leach-Bliley in 1999, citing that deregulation would create banks and other financial entities that were "too big to fail," which ultimately rang true in the financial crisis of 2008. (See video below for Rep. Dingell's 1999 floor speech.)
"I was proud to stand in opposition to Congress's efforts to repeal Glass-Steagall in 1999 because I knew doing so would put far too much power in the hands of bankers to the detriment of Americans' financial security," added Dingell. "I'm proud to support similar legislation in the House to take steps to return order to or financial dealings and end some of the wayward ways of Wall Street."
Dingell is a cosponsor of Rep. Marcy Kaptur's (D-OH09) bill, H.R. 129, the Return to Prudent Banking Act of 2013, which, like Senator Warren's bill, would restore Glass-Steagall.