Portsmouth, Ohio City Council passes Glass-Steagall resolution on Aug. 8. The resolution was passed unanimously, 6-0. The full text of the resolution is as follows:
A Resolution requesting that the United States Congress immediately pass H.R. 1489, the Return to Prudent Banking Act of 2011, and identical legislation in the Senate as the indispensable first measure to save the nation from irrevocable economic harm.
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 Federal Banking Act of 1933, the so-called Glass-Steagall Act,” and
Whereas, an effective and stable banking system is essential to the functioning of our economy; and
Whereas, the current weight of trillions of dollars of debt foisted on the U.S. Taxpayers in the 2008-2011 bailout of Wall Street has and 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 Federal Banking Act of 1933, and
Whereas, from 1933 to 1999, the Federal Banking Act, also known as Glass-Steagall, laws did protect the public interest by separating and regulating commercial banking, investment banking, insurance companies and securities firms; and
Whereas, the lack of such protection since 1999 has encouraged financial industry segments to exploit the financial system for their own gain, in violation of the public interest and to the severe detriment of the economy and general welfare; and
Whereas, the first step to solving this problem is the reinstatement of Glass-Steagall through the adoption and enactment of H.R. 1489, and
Whereas, the U.S. Congress and Senate have attempted to restore the Banking Act of 1933/ Glass-Steagall laws by means of S.2886 Banking Integrity Act (now under the jurisdiction of the Senate Banking Committee), Senate Amendment 3884, H.R. 4375 Glass-Steagall Restoration Act, H.R. 4377 Return to Prudent Banking Act, and H.R. 4461 Banking Integrity Act) to benefit our nation and people; and WHEREAS, on April 12, 2011, H.R. 4377 was reintroduced as H.R. 1489 Return to Prudent Banking Act stating, to repeal certain provisions of the Gramm-Leach-Bliley Act and revive the separation between commercial banking and the securities business in the manner provided by the Banking Act of 1933, the so-called Glass-Steagall Act, and for other purposes; and
Whereas, the enactment of H.R. 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, and
Whereas, on April 12, 2011, Kansas District Federal Reserve Governor Thomas Hoenig recommended reclassifying government subsidized financial institutions as Government Sponsored Enterprises for the purpose of preventing them from engaging in activities not prescribed under Glass-Steagall standards; and
Whereas, the Financial Crisis Inquiry Report, issued January 2011, finds that our financial system is, in many respects, still unchanged from what existed on the eve of the crisis and the U.S. financial sector is now more concentrated than ever in the hands of a few large, systemically significant institutions. Now, therefore,
BE IT RESOLVED by City Council of the City of Portsmouth, Ohio:
SECTION I. That City Council hereby requests that the United States Congress immediately pass H.R. 1489, the Return to Prudent Banking Act of 2011, and identical legislation in the Senate and other compatible legislation as noted above as the indispensable first measure to save the nation from irrevocable economic harm.
SECTION II. This Resolution directing administrative action as provided for in Section 12 of the Charter of the City of Portsmouth, Ohio, shall be in force and effect from and after its adoption.