“Banking should be boring. Savings accounts, checking accounts — the things that you and I rely on every day — should be safe from the sort of high-risk activities that broke our economy.” – Senator Elizabeth Warren.
For over half a century, the Glass-Steagall Act protected our banking system by keeping traditional commercial banks (where we have our checking accounts, saving accounts and the like) separate from high-risk investment banks.
The government agreed to insure the deposits we make in commercial banks through the FDIC, with the understanding that these same banks couldn’t legally use these deposits as stakes in the Wall Street casino.
But the repeal of Glass-Steagall in 1999 shattered the firewall between commercial and investment banks, jeopardizing insured funds and paving the way for the irresponsibly risky behavior that caused the financial crisis.
Senator Elizabeth Warren and a bipartisan group of senators are seeking to restore some sanity to our banking system by re-establishing a modern version of Glass-Steagall.
Tell Congress to pass Sen. Warren’s 21st Century Glass Steagall Act. Click here to sign the petition.
Sen. Warren’s 21st Century Glass Steagall Act is her first big banking bill since coming to the Senate.
It would once again prohibit commercial banks from riskier investment-bank transactions, and would be updated to take into account the greater degree of banking complexity since Glass-Steagall was first written in 1933.
Currently, when giant banks place government-insured savings at risk, they do so knowing that they can keep any profits they make if things go well, but that ultimately U.S. taxpayers are on the hook if things go terribly wrong.
That creates a perverse “heads I win, tails you lose” scenario, and an incentive for the banks to be massively irresponsible.
Enough is enough. It’s time to restore sanity to Wall Street and the banking system.
Click the link below to sign the petition. Show your support for Elizabeth Warren, and urge Congress to pass this critical legislation to bring badly needed reform to Wall Street.
While this won’t be an easy fight, it’s important to remember that Elizabeth Warren conceived of and drove the creation of the Consumer Financial Protection Bureau — something that initially was derided as politically impossible. But widespread grassroots pressure forced Congress to take action.
We need the same kind of grassroots pressure here. If enough of us band together to support Sen. Warren and the bipartisan group of senators working with her, we can force Congress to rein in “too big to fail” banks and make sure that when their investments go South, it’s not taxpayers who are left footing the bill.
Thank you for being part of the movement to reform Wall Street.
Matt Lockshin, Campaign Manager
CREDO Action from Working Assets
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