BILL NUMBER: ACR 73	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Roger Hernández
   (Coauthor: Assembly Member Buchanan)

                        AUGUST 5, 2013

   Relative to the Glass-Steagall Act.


	LEGISLATIVE COUNSEL'S DIGEST


   ACR 73, as introduced, Roger Hernández. The Glass-Steagall Act.
   This measure would urge the President and the Congress of the
United States to enact federal legislation to protect the public
interest by reviving the separation between commercial banking and
speculative activity embodied in the Glass-Steagall Act.
   Fiscal committee: no.



   WHEREAS, An effective monetary and banking system is essential to
the proper functioning of the economy; and
   WHEREAS, In order to be effective, a monetary and banking system
must serve the public interest; and
   WHEREAS, The federal Banking Act of 1933, commonly referred to as
the Glass-Steagall Act, contained key provisions that served the
public interest by prohibiting commercial banks from engaging in the
kinds of investment banking and speculative activity that contributed
to the collapse of the banking system during the Great Depression;
and
   WHEREAS, In 1999, Congress repealed these key provisions of the
Glass-Steagall Act, allowing commercial banks to engage in
speculative activity once more; and
   WHEREAS, The resulting commercial bank involvement in speculative
activity worked against the public interest by placing the commercial
banks themselves in financial jeopardy and contributing to the Great
Recession; and
   WHEREAS, Although, in 2010, Congress passed the Dodd-Frank Wall
Street Reform and Consumer Protection Act to address the root causes
of the recession, that act does not provide the same level of
protection from speculative activity in the financial markets as the
provisions of the Glass-Steagall Act did; and
   WHEREAS, The public interest will continue to be at risk until
commercial banks are prohibited from engaging in speculative activity
again; and
   WHEREAS, In the current Congress, Congresswoman Marcy Kaptur
(D-Ohio) and Congressman Walter Jones (R-North Carolina) have
introduced H.R. 129, and Senator Tom Harkin (D-Iowa) has introduced
S. 985, known as the Return to Prudent Banking Act of 2013, to revive
the separation between commercial banking and speculative activity
embodied in the repealed provisions of the Glass-Steagall Act; and
   WHEREAS, The Return to Prudent Banking Act of 2013 received
support from diverse, and sometimes opposing groups and individuals,
including, but not limited to, all of the following: the AFL-CIO; the
American Federation of Teachers; the International Association of
Machinists; Thomas Hoenig, Vice Chair of the FDIC; David Stockman,
former Chair of the Office of Management and Budget under Ronald
Reagan; economists Luigi Zingales and Lyndon LaRouche; Robert Reich,
former Labor Secretary under Bill Clinton; Stanford Weill, former CEO
of Citibank and leader of the effort to repeal the Glass-Steagall
Act in 1999; and various state legislatures, more than 20 of which
have filed resolutions urging Congress to restore the Glass-Steagall
Act; now, therefore, be it
   Resolved by the Assembly of the State of California, the Senate
thereof concurring, That the Legislature urges the President and the
Congress of the United States to enact federal legislation to protect
the public interest by reviving the separation between commercial
banking and speculative activity embodied in the Glass-Steagall Act;
and be it further
   Resolved, That the Chief Clerk of the Assembly transmit copies of
this resolution to the President and Vice President of the United
States, to the Speaker of the House of Representatives, to the
Majority Leader of the Senate, to each member of California's
delegation to Congress, and to the author for appropriate
distribution.