LINETTE LOPEZ – JUL. 11, 2013
Elizabeth Warren is making good on her promise to scare Wall Street. Today, she’ll introduce a bill to reenact Glass-Steagall.
Glass-Steagall is the 1933 law that separated commercial and investment banking. Back in 1999 it was repealed by the Gramm-Leach-Bliley Act at the urging of Wall Street heavyweights like then-Citi CEO Sandy Weill.
Then the financial crisis happened. Many banks failed and others got swallowed up into larger banks.
After all that, Sandy Weill said he was wrong on national television.
Elizabeth Warren was elected to the Senate based in part on her crusade against Wall Street excess. For many, this is one massive way to do that. Sen. John McCain (R-Ariz), Washington Democrat Maria Cantwell and Maine Independent Angus King are co-sponsoring the bill.
You can read it in full here, but the introduction follows:
To reduce risks to the financial system by limiting banks’ ability to engage in certain risky activities and limiting conflicts of interest, to reinstate certain Glass-Steagall Act protections that were repealed by the Gramm-Leach-Bliley Act, and for other purposes.
This is a move to reduce the size of America’s behemoth banks. We’ve heard the slogans not just from Warren, but also Senators David Vitter (R-LA) and Sherrod Brown (D-OH)— “too big to fail,” “too big to manage.”
Wall Street’s army of lobbyists are unlikely to let this stand without an epic fight. Let them march; Warren loves being a conversation starter, and she’ll repeat this one over and over again.