Rep. Marcy Kaptur’s ‘Return to Prudent Banking Act’ Credits Schiller Institute and AFL-CIO Support
April 19, 2023, 2022 (EIRNS)—Ohio Congresswoman Marcy Kaptur reintroduced the Return to Prudent Banking Act of 2023 to reinstate essential provisions of the 1933 Glass-Steagall Act, including the restoration of the separation between commercial and investment banking. Her statement prominently notes: “The legislation has been endorsed by the Schiller Institute and the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO).”
It then reads:
“ ‘The 2008 financial crash nearly took down our entire economy and led to the great recession wiping out the income and savings for many Americans. The recent collapse of Silicon Valley Bank in California and Signature Bank in New York echoes the 2008 collapse with speculators squeezing through every regulatory keyhole to find an avenue to game the system,’ said Congresswoman Marcy Kaptur. ‘In 2023, here we are again, watching bank runs, failures, and massive buyouts. Wall Street has proven that it cannot control itself, and it is only a matter of time before it steers America into the next financial crisis. It cannot be any clearer that the time for systemic reform is now, which is why I am introducing the Return to Prudent Banking Act to do just that.’
“The Return to Prudent Banking Act does the following:
“• Restores the Banking Act of 1933 (Glass-Steagall Act) to re-instate prohibition against the transaction of banking activities by securities firms.
“• Amends the Federal Deposit Insurance Act (FDIA) to prohibit a financial institution from being affiliated with any entity engaged in offering financial services such as stock or bond sales.
“• Prohibits officers, directors, and employees of securities firms from serving on the boards of depository institutions.
“• Requires rigorous oversight and reporting to guarantee that no bank or financial institution is involved in risky investment or securities activity.
“Original Cosponsors: Representatives Eleanor Holmes Norton (DC-00), Chellie Pingree (ME-01), Rashida Tlaib (MI-13), Ilhan Omar (MN-05), Bonnie Watson Coleman (NJ-12), Susan Wild (PA-07), and Mark Pocan (WI-02).
“The full bill text for the Return to Prudent Banking Act can be found here.”