Saying that Glass-Steagall “is exactly the type of reform that Congress must implement against the pleas of Wall Street executives,” Congresswoman Marcy Kaptur gave her HR 1489 “Return to Prudent Banking Act” a boost Monday, with a statement in US News & World Report. Only through the reinstatement of Glass-Steagall’s “separation between commercial banking and the securities business,” she says, could we “ensure a safe viable financial system for a 21st-century American economy.”
Describing the world Glass-Steagall separation created as one built on the principles of “confidence and fairness,” it also provided for the Gross Domestic Product to grow from $56.4 billion to $9.3 trillion, in current dollars. Only as “Wall Street gained political and economic influence,” were they able to overthrow Glass-Steagall through the Gramm-Leach-Bliley Act in 1999, the enactment of which became “a clear signal that Wall Street was in charge.” Kaptur cleverly avoids direct mention of the Dodd-Frank disaster, rather disparaging “one-size-fits-all” cures for the collapse, saying that, to move forward, we must spurn “the failed concepts of speculation and manipulation” (which Dodd-Frank is built on).
Kaptur notes that her notion of bank separation is gaining favor, quoting Sandy Weill and adding that her bill now has 78 co-sponsors, in addition to herself. “The time is now to implement smart reforms to protect the American economy as well as the American consumer,” she says in closing. “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.”