summary
Introduced
09/26/2024
09/26/2024
In Committee
09/26/2024
09/26/2024
Crossed Over
Passed
Dead
Introduced Session
2024-2025 Regular Session
Bill Summary
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.
AI Summary
This resolution respectfully urges the United States Congress to reinstate the Glass-Steagall Act, a crucial banking regulation originally enacted in 1933 during the Great Depression to prevent speculative financial practices. The resolution argues that the Act's repeal in 1999 allowed commercial banks to merge with investment firms, insurance companies, and other financial services firms, creating large financial conglomerates that engaged in risky practices. These practices ultimately contributed to the 2008 housing market collapse and subsequent recession, which cost millions of jobs and required hundreds of billions in taxpayer-funded bailouts. While the Dodd-Frank Wall Street Reform and Consumer Protection Act was passed in response to the recession, the resolution contends that this law does little to separate commercial and investment banking. By urging the reinstatement of the Glass-Steagall Act, the resolution aims to strengthen the financial system and prevent the kind of irresponsible financial activities that led to the economic crisis, with the goal of protecting taxpayers and maintaining economic stability.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Introduced, Referred to Assembly Financial Institutions and Insurance Committee (on 09/26/2024)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/AR161 |
| BillText | https://pub.njleg.gov/Bills/2024/AR/161_I1.HTM |
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