[Congressional Record Volume 161, Number 165 (Thursday, November 5, 2015)]
[House]
[Page H8145]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
THE RETURN TO PRUDENT BANKING ACT
(Ms. KAPTUR asked and was given permission to address the House for 1
minute.)
Ms. KAPTUR. Mr. Speaker, I rise to encourage you to join with me and
69 of our colleagues, a total of 70 already, who have signed on to
cosponsor H.R. 381, the Return to Prudent Banking Act. This bipartisan
bill would restore the provisions of the Glass-Steagall banking law
that separated prudent banking from wild speculation in the financial
realm.
Yesterday marked the 16th year, to the day, that Congress repealed
the Glass-Steagall Act in 1999, bestowing on financial institutions and
investment firms the ability to put the life savings and deposits of
the American people at greater risk.
I was one of the 57 Members of this Congress who voted against that
repeal of Glass-Steagall. At that time, my colleagues and I were told
by Wall Street that the banks were strangled by outdated restrictions,
that the repeal was a modern experiment in deregulation; so Congress
repealed this bedrock law, over our objections.
Look where that decision took America. We witnessed a terrible market
crash in 2008; now, slow growth and the outrageous enormous
accumulation of banking assets in a handful of institutions like JP
Morgan Chase, Goldman Sachs, Bank of America. They are raking in
record-shattering profits while paying depositors almost nothing on
their interest or on certificates of deposit as wages for working-class
Americans continue to flatline.
The original Glass-Steagall Act served our country well. It laid the
foundation for an unprecedented half century without financial panics
or crises. Just as important, it contributed to a right-sized banking
system focused on serving our economy and society as a whole rather
than enriching itself at everyone else's expense.
This Congress must reinstate the regulatory prudence of the Glass-
Steagall Act. Without these proper safeguards, it is only a matter of
time before Wall Street's greedy operatives once again steer the
American economy over the precipice.
Therefore, I urge my colleagues to cosponsor H.R. 381, the Return to
Prudent Banking Act of 2015. Help restore prudence, discipline, and
sanity to our financial system and, in turn, real economic growth to
America.
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