DearColleague.us

Letter

From: The Honorable Marcy Kaptur
Sent By: Andrea.MacVay@mail.house.gov
Bill: H.R. 381
Date: 12/21/2015

Support the Return to Prudent Banking

***A bill with bipartisan support to reinstate Glass-Steagall

Current Co-Sponsors: Bass, Blumenauer, Brady (Bob), Brown, Capuano , Chu, Cicilline, Coffman, Cohen, Conyers, Cummings, Davis (Danny), Defazio, DeLauro, DelBene, DeSaulnier, Doggett, Doyle, Edwards, Ellison, Fattah, Fudge, Gabbard, Garamendi, Grayson, Green (Gene), Grijavala, Gutierrez, Hahn, Hastings, Honda, Jackson Lee, Johnson (Eddie Bernice), Johnson (Hank), Jones, Kilpatrick, Lee, Lipinski, Lofgren, Lowenthal, Lummis, Lynch, McDermott, McGovern, Napolitano, Nolan, Holmes Norton, Peterson, Pingree, Pocan, Rangel, Roybal Allard, Ryan (Tim), Sanchez (Loretta), Sablan, Schakowsky, Schrader, Serrano, Slaughter, Speier, Thompson (Bennie G.), Tonko, Tsongas, Visclosky, Walz, Watson Coleman, Welch, Yarmuth, Yoho

Endorsed by the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO); International Federal of Professional and Technical Engineers (IFPTE); League of United Latin American Citizens (LULAC); International Union of Bricklayers & Allied Craftworkers (BAC);International Union of Elevator Constructors (IUEC)

 

Dear Colleague:

 

I invite you to stand with me against corporate greed and become a co-sponsor of the Return to Prudent Banking Act of 2015—a bill with bipartisan support to reinstate the Glass-Steagall Act.

The Glass Steagall Act or the Banking Act of 1933 was signed into law during the Great Depression in an effort to restore order and stability to the banking system. Rep. Henry Steagall and Sen. Carter Glass wrote the law and through its passage created the Federal Deposit Insurance Corporation (FDIC), and prevented commercial banks from trading securities with deposits from their clients.

Sixteen years ago, Congress repealed the Glass-Steagall Act. This action gave financial institutions and investment firms access to the deposits of the American consumer, which then were used to gamble on the Wall Street casino.  It was this misguided deregulation that allowed the creation of giant financial supermarkets and created companies too big and intertwined to fail.

In October, the New York Federal Reserve reported that profits for the five largest U.S. banks have soared since the global financial crisis.  From 2009 to 2014, the combined net income of J.P. Morgan, Citigroup, Bank of America, Goldman Sachs, and Morgan Stanley annually averaged $41.73 billion, up from annual average of $25.08 billion from 2002 to 2008. Fifteen years ago, the assets of these same banks were approximately17 percent of gross domestic product. Today, estimates for their assets are over half of GDP.

This is too much power in too few hands. This Congress must re-instate the effective regulatory barriers of the Glass-Steagall Act. Without these proper safeguards, it is only a matter of time before Wall Street once again steers the American economy into the ditch

Therefore, I urge you to co-sponsor H.R. 381, The Return to Prudent Banking Act of 2015.  Help restore prudence and discipline to these financial giants, and bring sanity back to our financial system.  You can contact my staff, Edward Edney, at (202) 225-4146 orEdward.Edney@mail.house.gov if you wish to join the effort or have any additional questions.

Sincerely,

Marcy Kaptur

Member of Congress