Bill > HJM4006

This Joint Memorial urges Congress to pass legislation, such as H.R. 2714 or S.881, that would bring back the separation between commercial banking and investment banking, a rule that was in place under the Glass-Steagall Act. The Glass-Steagall Act, enacted in 1933, aimed to protect the public interest by separating these two types of banking, along with insurance and securities. The memorial argues that the repeal of Glass-Steagall in 1999 contributed to economic instability, including speculative bubbles and recessions, leading to foreclosures and job losses, and ultimately requiring taxpayer bailouts of large financial institutions that engaged in risky investments. Commercial banking typically involves taking deposits and making loans, while investment banking involves activities like underwriting and trading securities. The memorial highlights that reinstating these separations would prevent commercial banks from engaging in risky investments using depositor funds and protect taxpayers from having to fund bailouts.

Business and Industry

https://app.leg.wa.gov/billsummary?BillNumber=4006&Year=2025&Initiative=false