Senator Elizabeth Warren Responds To The Political Carnival

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Town Crier

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.

U.S. Senate letterhead

Dear David,

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 The central provisions of Glass-Steagall were repealed in 1999, leaving the nation vulnerable to the sorts of risky bets that nearly brought down our economy in 2008.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.

Sincerely,

ElizabethWarrenSignature

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  • Mark

    Love Warren...but I'm not holding my breath. Those who have often fought in the trenches to protect the consumer end the way of Ralph Nader...marginalized and pushed to the fringe . And when the necessary regulation does come for appearances sake (like Dodd Frank enter laugh track), so does the lobbying to defang the legislation or circle around it with loopholes. Government officials who work in the Executive branch are often vetted in by the Pres himself. Then we wonder why, when the alarm bells go off, no one is manning the wheel. This is where, in my view, the checks and balances of the Constitution have been undermined by too much executive authority.

    Speaking of consumer advocates...I think you've been a bit too harsh on Ron Paul. Yeah...he's out there. Yeah...he's not fit for office and attracts undesirable support. But as a talking head his greater points about the Federal Reserve deserve some attention. His efforts to expose the exclusive cocktail party our Wall Street and Gov. elites have been having at our expense through the Federal Reserve deserve notice. Things are a bit too chummy for my liking. Alan Grayson and Dennis Kucinich have also rallied to the charge. If Paul is motivated by lunatic reasons, it doesn't mean his message should be discounted. Separate the tinfoil from the truth. Let us not spend so much time squabbling over political prejudice or ideology and call a spade a spade; that the second largest contributor to Obama's 2008 campaign was Goldman Sachs. The Same Goldman Sachs that ate Lehman for lunch while emerging unscathed from the crisis. D or R can't stop any man in power from answering to Green.

  • David G

    Mark, you're talking the new Glass-Steagall and that's great. Let's all support EW's and John McCain's efforts (yes, that John McCain).This time he's hitched his wagon to a winner. Senator Warren knows her stuff and she's fighting to keep financial institutions out of the gambling business with our money.

  • David G

    Frances, with EW taking an aggressive stance with Holder today over at DOJ, pushing him to stop mealy-mouthing responses and instigating him to become aggressive, we may just see the long overdue action that we all deserve. But thank you for your kind words. Laffy, Paddy and I really appreciate your support.

  • David G

    Couldn't have been done without Laffy and Paddy. They made this whole thing what it is today. I just serve -- but thanks Carla.

  • Kenneth Thomas

    Great job!

  • Mark

    No more bailouts. Hold government departments and our Presidents Bush and Obama responsible for letting Wall Street walk away from the 100 car pileup by issuing a slap on the wrist. Did Holder nail any of these greedy corporate Vegas Gamblers?

    I am not opposed to more regulation, but until we realize that under Bush in particular the regulation in existence was IGNORED, we think we are solving the problem but only creating an illusion. Regulatory reform cannot be the sole answer. We must let the corporation know that there will be criminal and business consequences to reckless behavior. If the Federal Reserve and the U.S. Treasury are the lender of last resort, no regulation is going to prevent the next bubble from occurring, period. Human greed is too strong, and maverick risk-taking will not be curtailed. Please--if any law can be passed make sure that it is this: ANY financial institution that gambles with their client's money may not exceed a reasonable level of LEVERAGE.

  • http://www.tumblr.com/blog/akinsc Carla Akins

    WooHoo, great job David.

  • Frances R

    Very, very nice. Well done, David! Senator Warren is on the case!

  • Charles David

    Elizabeth...you are my hero!

  • http://thepoliticalcarnival.net/ GottaLaff

    We both are. We iz the evil twinzies of Twitterz.

  • Paddy

    Reading you guyz comments in my email reads like a soap opera.... Which one of you is the evil twin?

  • http://thepoliticalcarnival.net/ GottaLaff

    Poor, sweet, innocent DRUNK you. You forgot drunk.

  • http://FreakoutNation.com/ Anomaly 100

    OH I see how it is now. You're a big shot and forgetting about poor, sweet, innocent me.

  • http://FreakoutNation.com/ Anomaly 100

    Yay! I'm so glad our invisibility cloaks are working.

  • http://thepoliticalcarnival.net/ GottaLaff

    Then go get some, Memo! I can't supply the whole damned Internetz!

  • http://FreakoutNation.com/ Anomaly 100

    Forget you Memo! I want wine!

  • http://thepoliticalcarnival.net/ GottaLaff

    Nobody. We're using invisible ink computers.

  • David G

    Bernie would be a hoot.

  • http://FreakoutNation.com/ Anomaly 100

    Otay. As long as this conversation is just between us. No one else can read it, right Memers?

  • http://thepoliticalcarnival.net/ GottaLaff

    Forget Feinstein... not a fan. Boxer and Sanders!

  • http://thepoliticalcarnival.net/ GottaLaff

    Only if you get us some Senator mentions, Memo!

  • http://thepoliticalcarnival.net/ GottaLaff

    Or the three way we had with Maddow? Okay, Memo, I'll stay mum.

  • David G

    I'm calling Boxer and Feinstein. You sure wine is included?

  • http://FreakoutNation.com/ Anomaly 100

    So, do I get lunch with wine too?

  • http://FreakoutNation.com/ Anomaly 100

    Sssh baby! We're not supposed to talk about that in public.

  • http://thepoliticalcarnival.net/ GottaLaff

    Wait. You're not gay Memo? Then what was that sloppy kiss you gave me?

  • http://thepoliticalcarnival.net/ GottaLaff

    If two more GOOD senators write to you, you get lunch with WINE! And dessert!

  • http://thepoliticalcarnival.net/ GottaLaff

    I write you though, Memo!

  • http://FreakoutNation.com/ Anomaly 100

    I wanna letter from Elizabeth. I have sacrificed. I would turn gay for her if she'd have me.

    PSers: Good job David!

  • David G

    Boy, I'm with your there, Jack.

  • David G

    With Laffy and Paddy pushing, you never know what heights you can reach or who's listening, beyone the NSA. You have a great following and a fantastic political voice. I really appreciate your stuff. I may not comment often enough --They crack the whip over at this shop. If two more senators write me, I get lunch. DG

  • Jack Boardman

    Congratulations to David, Laffy & Paddy! It's good to know my favorite libtard blog has this kind of influence! Now...on to passage of a 21st Cantury Glass-Steagall Act!

  • http://FreakoutNation.com/ Anomaly 100

    She never writes me. Sniff...No really. Not like that.

  • David G

    This couldn't have happened without Laffy and Paddy's help. We're all fighting the same fight.

  • 42bkdodgr

    Congratulations, David, Laffy and Paddy for getting such a wonderful letter from Sen. Warren.

  • Dave Fouchey

    A.W.E.S.O.M.E!

  • David G

    I've been a supporter of EW for a long time. She is certainly an accomplished and amazing woman. DG

  • juicyfruityyy

    Thanks for posting the letter.

  • KABoink_after_wingnut_hacker

    That's impressive work David!
    I've been a fan of Elizabeth Warren for years and have posted numerous times after the financial debacle about reinstating a Glass-Steagall like firewall. I don't think our MSM pays enough attention critical issues such as this and I for one am glad that you've again shone a light on it.