WARREN, SENATORS INTRODUCE 21ST CENTURY GLASS-STEAGALL ACT

     (The following press release from Sen. Warren's office was received by 
e-mail. The sender verified the statement.) 
FOR IMMEDIATE RELEASE 
July 11, 2013 
Contact: Lacey Rose (Warren), 202-224-2292 
Brian Rogers (McCain), 202-224-7130  
Jared Leopold (Cantwell), 202-224-8277 
Scott Ogden (King), 202-224-5344 
SENATORS WARREN, McCAIN, CANTWELL AND KING INTRODUCE 21ST CENTURY 
GLASS-STEAGALL ACT 
Text of the Legislation 
Fact Sheet 
Washington, DC - Senators Elizabeth Warren (D-MA), John McCain (R-AZ), Maria 
Cantwell (D-WA), and Angus King (I-ME) today will introduce the 21st Century 
Glass-Steagall Act, a modern version of the Banking Act of 1933 
(Glass-Steagall) that reduces risk for the American taxpayer in the financial 
system and decreases the likelihood of future financial crises. 
The legislation introduced today would separate traditional banks that have 
savings and checking accounts and are insured by the Federal Deposit Insurance 
Corporation from riskier financial institutions that offer services such as 
investment banking, insurance, swaps dealing, and hedge fund and private equity 
activities. This bill would clarify regulatory interpretations of banking law 
provisions that undermined the protections under the original Glass-Steagall 
and would make "Too Big to Fail" institutions smaller and safer, minimizing the 
likelihood of a government bailout. 
"Since core provisions of the Glass-Steagall Act were repealed in 1999, 
shattering the wall dividing commercial banks and investment banks, a culture 
of dangerous greed and excessive risk-taking has taken root in the banking 
world," said Senator John McCain. "Big Wall Street institutions should be free 
to engage in transactions with significant risk, but not with federally insured 
deposits. If enacted, the 21st Century Glass-Steagall Act would not end 
Too-Big-to-Fail. But, it would rebuild the wall between commercial and 
investment banking that was in place for over 60 years, restore confidence in 
the system, and reduce risk for the American taxpayer." 
"Despite the progress we've made since 2008, the biggest banks continue to 
threaten the economy," said Senator Elizabeth Warren. "The four biggest banks 
are now 30% larger than they were just five years ago, and they have continued 
to engage in dangerous, high-risk practices that could once again put our 
economy at risk. The 21st Century Glass-Steagall Act will reestablish a wall 
between commercial and investment banking, make our financial system more 
stable and secure, and protect American families." 
"Too many Main Streets across America have paid the price for risky gambling on 
Wall Street," Senator Maria Cantwell said. "This bill would restore clear 
bright lines that separate risky activities from the traditional banking 
system. It's time to restore faith in our financial institutions by rebuilding 
the firewall that protected our economy for decades in the wake of the Great 
Depression. Restoring Glass-Steagall would focus our financial system where it 
belongs: getting capital into the hands of job creators and businesses on Main 
Streets across America." 
"As Maine families continue to feel the sting of the 2008 economic downturn, 
America's largest financial institutions continue to engage in risky banking 
and investment activities that threaten the health of our financial sector and 
our economy as a whole. While recent efforts at financial sector regulatory 
reform attempt to address the ‘too big to fail' phenomenon, Congress must 
take additional steps to see that American taxpayers aren't again faced with 
having to bail out big Wall Street institutions while Main Street suffers," 
Senator Angus King said. "While the 21st Century Glass-Steagall Act is not the 
silver bullet to end ‘too big to fail,' the legislation's re-establishment of 
clear separations between retail and investment banking, as well as its 
restrictions on banking activities, will limit government guarantees to insured 
depository institutions and provide strong protections against the spillover 
effects should a financial institution fail." 
The original Glass-Steagall legislation was introduced in response to the 
financial crash of 1929 and separated depository banks from investment banks. 
The idea was to divide the risky activities of investment banks from the core 
depository functions that consumers rely upon every day. Starting in the 
1980s, regulators at the Federal Reserve and the Office of the Comptroller of 
the Currency reinterpreted longstanding legal terms in ways that slowly broke 
down the wall between investment and depository banking and weakened 
Glass-Steagall. In 1999, after 12 attempts at repeal, Congress passed the 
Gramm-Leach-Bliley Act to repeal the core provisions of Glass-Steagall. 
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