Glass-steagall act
The 1933 Glass-Steagall Act was a Depression-era law which walled-off the activities of Main Street banks from Wall Street investment firms, separating commercial banking from high-risk financial speculation. In 1999 however, the Clinton administration repealed this Act and allowed banks to begin participating in the same high-risk investments that Glass-Steagall was designed to prohibit. Many claim this wall needs to be rebuilt, saying Clinton’s repeal played a major role in our 2008 financial meltdown and the ensuing world-wide recession. In response to this catastrophe, we passed the Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010. Dodd-Frank attempted to prevent another financial crisis and the need to bail out banks. Among other things, it prohibited banks from using taxpayer-insured depositor funds for high-risk derivative transactions known as credit-default swaps. However, this safeguard was recently erased when a banker-friendly measure was included in our last government funding bill, hastily passed to avert another government shutdown. Wall Street critics warn the stage is now set for taxpayers to be on the hook for more bank bailouts should these risky investments threaten to blow up our financial system as they did in 2008.

Pending Legislation:
H.R.381 - Return to Prudent Banking Act of 2015

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May 21, 2020
Poll Closing Date
May 27, 2020

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