Bill > AR161

Introduced Session

This resolution respectfully urges the United States Congress to reinstate the "Glass-Steagall Act" in order to strengthen the financial system. The "Glass-Steagall Act" was enacted to eliminate the speculative activities that caused the collapse of the banking system during the Great Depression. The "Glass-Steagall Act" curbed speculative activities by erecting a firewall between commercial and investment banking. Following the repeal of the "Glass-Steagall Act" in 1999, commercial banks merged with investment firms and other financial firms to form vast conglomerates. The newly formed financial conglomerates began engaging in irresponsible financial practices and speculative activities that contributed to the collapse of the housing market and in turn lead to the worst recession since the Great Depression. The United States Congress enacted the "Dodd-Frank Wall Street Reform and Consumer Protection Act" to address the root causes of the recession. However, the "Dodd-Frank Wall Street Reform and Consumer Protection Act" does little to separate commercial and investment banking. The reinstatement of the "Glass-Steagall Act" is necessary to strengthen our financial system and to end the irresponsible financial practices and speculative activities that lead to the collapse of the housing market and the subsequent recession in 2008.

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Verlina Reynolds-Jackson (D)*, 

Introduced, Referred to Assembly Financial Institutions and Insurance Committee (on 09/26/2024)

Official Document