Assembly Resolution No. 1012
BY: M. of A. Steck
URGING the New York State Congressional delegation
to support efforts to reinstate the separation of
commercial and investment banking functions in
effect under the Glass-Steagall Act, and to support
H.R.3711, H.R.129, S.985, and S.1282
WHEREAS, It is the sense of this Legislative Body to urge the New
York State Congressional delegation to support efforts to reinstate the
separation of commercial and investment banking functions in effect
under the Glass-Steagall Act, and to support H.R.3711 - 21st Century
Glass-Steagall Act of 2013, H.R.129 - the Return to Prudent Banking Act
of 2013, S.985 - 21st Century Glass-Steagall Act of 2013, and S.1282 -
the Return to Prudent Banking Act of 2013; and
WHEREAS, An effective money and banking system is essential to the
functioning of the economy; and
WHEREAS, Such a system must function in the public interest, without
bias; and
WHEREAS, The Federal Banking Act of 1933, commonly referred to as
the Glass-Steagall Act, was written, as stated in its introduction: to
provide for the safer and more effective use of the assets of banks, to
regulate interbank control, to prevent the undue diversion of funds into
speculative operations, and for other purposes; and
WHEREAS, Since 1933, the Glass-Steagall Act has protected the public
interest in matters dealing with the regulation of commercial and
investment banking, in addition to insurance companies and securities;
and
WHEREAS, The Glass-Steagall Act was repealed in 1999, permitting
members of the financial industry to exploit the financial system for
their own gain in disregard of the public interest, contributing to the
greatest speculative bubble and worldwide recession since the Great
Depression of 1933; and
WHEREAS, The worldwide recession has left millions of homes in
foreclosure; has cost the loss of millions of jobs nationwide; and has
put severe financial strains on states, counties and cities,
exacerbating unemployment and loss of social services; and
WHEREAS, Many of the financial industry entities were "bailed out"
by the United States Treasury at a cost of hundreds of billions of
dollars to American taxpayers; and
WHEREAS, Within the over 840 pages of the Dodd-Frank Wall Street
Reform and Consumer Protection Act, and its tens of thousands of
appended pages of rules and regulations, there are no prohibitions that
prevent "too big to fail" commercial banks and bank holding companies
from investing in, or undertaking, substantial risks involving
speculative securities and trillions of dollars of derivatives exposure;
and
WHEREAS, The American taxpayers continue to be at risk for the next
round of bank failures; and
WHEREAS, The United States Senate and House of Representatives have
been making efforts to restore the protections of the Glass-Steagall
Act; and
WHEREAS, Congresswoman Marcy Kaptur (D-OH), and Congressman Walter
Jones (R-NC) have introduced H.R.129, known as the Return to Prudent
Banking Act of 2013, which calls for reviving the separation between
commercial banking and the securities business in the manner provided in
the Glass-Steagall Act, which Act has over 80 co-sponsors as of February
2014; and
WHEREAS, Subsequent to H.R.129, Congressmen Walter Jones (R-NC) and
John Tierney (D-MA) have introduced H.R.3711, the "21st Century
Glass-Steagall Act of 2013"; and, in the United States Senate, Senator
Tom Harkin (D-IA) has introduced S.985 to restore Glass-Steagall
provisions; and Senators Elizabeth Warren (D-MA), John McCain (R-AR),
Maria Cantwell (D-WA) and Angus King (I-ME) have introduced S.1282, the
"21st Century Glass-Steagall Act of 2013", with 10 co-sponsors as of
February 2014; and
WHEREAS, The call to reinstate Glass-Steagall, H.R.129, and other
legislative initiatives have received widespread national support from
prominent economic, banking, labor, academic, legislative and business
leaders, many of the major and respected national newspapers and many
others; now, therefore, be it
RESOLVED, That this Legislative Body pause in its deliberations to
urge the New York State Congressional delegation to support and enact
legislation that would reinstate the separation of commercial and
investment banking functions that were in effect under the
Glass-Steagall Act, prohibiting commercial banks and bank holding
companies from investing in stocks, underwriting securities or investing
in or acting as guarantors to derivative transactions, in order to
prevent American taxpayers from being called upon to fund hundreds of
billions of dollars to bail out financial institutions, as well as to
secure a safe American banking system, which can protect deposits, and
supply needed credit for a productive economy; and be it further
RESOLVED, That copies of this Resolution, suitably engrossed, be
transmitted to each member of the New York State Congressional
delegation.
