The city council of Irvington, NJ (an area that had been dominated by small machine-tool shops), passed a Glass-Steagall resolution Tuesday night, with council president John Sowell taking the patriotic stance of insisting that someone had to stick his neck out and be first, and so we will.
After an LPAC organizer spoke, saying that with regards to Kaptur's Dear Colleague letter, the council members should take it seriously and get others to endorse the resolution, council president Sowell gave a very clear explanation of Glass-Steagall, first outlining the separation of the banking from investment banks, then saying that its removal led to the financial crisis. He continued, that everyone on the council thinks we should take a stand on federal issues, that they want to speak out on larger questions, and that from their perspective, as a city in New Jersey, they want the NJ representatives to pass Glass-Steagall.
This view stands in contrast to an oft-stated view by other councilmen in various cities that they are small and have little to do with federal issues.
The text of the resolution is:
WHEREAS, H.R.1489, the Return to Prudent Banking Act of 2011, is now before the House of Representatives, which aims to revive the separation between commercial banking and the securities business, in the manner provided in the Banking Act of 1933, the so-called Glass-Steagall Act; and
WHEREAS, the current weight of trillions of dollars in gambling debts, foisted on the U.S. taxpayers in the 2008-2011 bailout of Wall Street and the City of London is currently obliterating and destroying the economy of the United States and its people; and
WHEREAS, it is in response to the failure of thousands of banks across the country that Congress enacted the Banking Act of 1933; and
WHEREAS, the first step to solving this problem is the reinstatement of Glass-Steagall through the adoption of and enactment of H.R. 1489; and
WHEREAS, the enactment of HR 1489 would provide greater security to banking deposits in commercial banks, would allow investment banks to leverage their own funds and limit the risks of the American citizenry;
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE TOWNSHIP OF IRVINGTON that the United State Congress is hereby requested to immediately pass H.R. 1489 and identical legislation in the Senate as the indispensable first measure to save the nation from irrevocable economic harm.