A SMALL bipartisan group of US senators yesterday introduced legislation that would break up Wall Street’s megabanks by separating traditional banking activity from riskier financial services.
The bill, called the 21st Century Glass-Steagall Act, has an uncertain future, but it shows some lawmakers’ frustration that banks have only continued to grow since the 2007-2009 financial crisis.
“The four biggest banks are now 30 per cent 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,” said Democratic senator Elizabeth Warren from Massachusetts, one of the sponsors of the bill.
The other sponsors are Republican Senator John McCain from Arizona, Democratic Senator Maria Cantwell from Washington, and Senator Angus King, an independent from Maine who caucuses with the Senate's Democrats.
The legislation would bring back elements of the 1933 Glass-Steagall Act, which divided commercial and investment banking, and was repealed in 1999.
City A.M. Reporter