Washington State 36th LD Democrats Endorse Glass Steagall
August 21, 2011 • 5:26PM

The 36th Legislative District Democrats passed a resolution endorsing Glass-Steagall on August 17th. They are the 8th such organization to pass a Glass-Steagall Resolution in Washington State. This is a district encompassing the neighborhoods northeast of Downtown Seattle, with neighborhoods such as Queen Anne, Magnolia and Ballard. The full text of the resolution is as follows:


WHEREAS, an effective and stable banking system is essential to the functioning of our economy; 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 fi rms; and

WHEREAS, the lack of such protection since 1999 has encouraged fi nancial industry segments to exploit the fi nancial 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 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 benefi t 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, on April 12, 2011, Kansas District Federal Reserve Governor Thomas Hoenig recommended reclassifying government subsidized fi nancial

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, fi nds that our fi nancial system is, in many respects, still unchanged from what existed

on the eve of the crisis and the U.S. fi nancial sector is now more concentrated than ever in the hands of a few large, systemically signifi cant institutions.

NOW THEREFORE, BE IT RESOLVED by the Washington State 36th District Democrats that:

The Washington State 36th District Democrats urges the United States Congress, in order to prevent American taxpayers from having to bail-out fi nancial

institutions, to enact legislation to reinstate the Banking Act of 1933 laws to prohibit commercial banks and bank holding companies from investing in

stocks, underwriting securities, investing in or acting as guarantors of derivatives transactions; and that the Washington State 36th District Democrats shall

transmit a copy of this Resolution to Senators Patty Murray and Maria Cantwell and to every member of the Washington State Congressional Delegation.

Sponsored by Seth Armstrong