Washington State Democratic Party Central Committee Passes Glass Steagall Resolution
September 26, 2011 • 8:30AM

The Washington State Democratic Party Central Committee (WSDCC) passed a resolution to reinstate Glass-Steagall at their meeting last week, September 17. This is one of two state-wide Democratic Party institutions to pass such a resolution. New: On September 17, 2011 the Louisiana State Central Democratic Committee also became a statewide Democratic Committee to pass a resolution in support of Glass Steagall.

The full text of their resolution is as follows:

WSDCCRES - 542 - 110917 - PASS - ECON - Reinstating Glass-Steagall

Restore Laws for the Separation of Banking, Insurance and Security Firms

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

WHEREAS from 1933 to 1999 the Federal Banking Act laws (also known as “Glass-Steagall”) did protect the public interest by separating and regulating commercial banking, investment banking, insurance companies and securities firms;

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:

WHEREAS the U.S. Congress and Senate have attempted to restore the Banking Act of 1933/Glass-Stegal laws by means of S.2886 Banking Integrity Act (now under the jurisdiction of the Senate Banking Committee), Senate Amendment 3884, H.R. 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;

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;

WHEREAS Representative McDermott (WA-07) has cosponsored H.R. 1489;

WHEREAS in 2009 Senator Maria Cantwell proposed amending the Banking Integrity Act (S. 2886) to reinstate the Glass-Steagall regulations;

WHEREAS on April 12, 2011 Kansas District Federal 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, systematically significant institutions;

THEREFORE BE IT RESOLVED that we, the Washington State Democratic Central Committee urge our representatives in the Unites States Congress and Senate, in order to prevent American taxpayers from having to bail-our financial institutions, to enact legislation to reinstate the Banking Act laws of 1933 to prohibit commercial banks and bank holding companies from investing in stocks, underwriting securities and investing in or acting as guarantors of derivatives transactions.

Submitted by the Jefferson County Democrats to the Washington State Democratic Central Committee for consideration at its September 17, 2011 meeting in Bellingham.

(Date Submitted 9/6/2011)

The Resolutions Committee recommended that this resolution be “PASSED WITH AMENDMENTS” at its September 17, 2011 Meeting in Bellingham.

The WSDCC “PASSED” this resolution at its September 17, 2011 Meeting in Bellingham.