Our voices do matter. And the words on The Political Carnival are being read -- at least by my native state's senior senator and the people's champion, Senator Elizabeth Warren. I have sent her each of our contributions here that related to banking and finance -- the people's war against Wall Street abuse.
Today I received this reply which I thought I'd share with you.
Thank you for contacting me in support of a modern Glass-Steagall Act.
As you know, the original Glass-Steagall Act was passed in response to the 1929 financial crash that led to the Great Depression. By separating investment banks from commercial banks, Glass-Steagall divided the risky activities of investment banks from the core depository functions of commercial banks that consumers rely on every day. The central provisions of Glass-Steagall were repealed in 1999, leaving the nation vulnerable to the sorts of risky bets that nearly brought down our economy in 2008.
Although the Dodd-Frank Wall Street Reform and Consumer Protection Act included the strongest set of financial reforms since the Great Depression, I very much agree with you that passing a modern version of the Glass-Steagall Act would help reduce the risk of future financial crises. I also believe that we need to end the problem of "Too Big to Fail," which refers to financial institutions that have grown so large that their collapse would have a disastrous effect on the health of the financial markets and the U.S. economy without government interference. In addition, it is critically important that we hold big banks -- and also their regulators -- accountable, and I strongly support financial reforms that prevent future bailouts, protect consumers, working families, and investors, and limit excessive risk-taking on Wall Street. That is why, on July 11, 2013, I introduced the 21st Century Glass-Steagall Act (S. 1282) with Senators McCain, Cantwell, and King. This bill, like the original Glass-Steagall Act of 1933, separates traditional banks that offer federally-insured savings and checking accounts from riskier financial services such as investment banking, insurance, hedge fund, and private equity activities. S. 1282 also modernizes the original Glass-Steagall Act by addressing the increasing complexity of today's financial markets and the heightened risk posed by complex financial products that did not exist when Glass-Steagall was originally passed.
Thank you again for your input, and I will keep your thoughts in mind as I work to end Too Big to Fail and pass the 21st Century Glass-Steagall Act.
All the best to The Political Carnival and thanks for helping get our word out there. There's still much work to do.