State Senator Perry Clark Renews Fight for Glass-Steagall
June 29, 2012 • 8:37PM

The following is a statement released by Kentucky State Senator Kerry B. Clark

Statement from Senator Perry B. Clark on his plans to reintroduce a resolution urging the Kentucky Congressional Delegation to support HR 1489 – Restore Glass-Steagall

"I plan to re-introduce a resolution in the Kentucky State Senate in support of Congressional House Bill 1489. HR 1489, which re-instates the Glass-Steagall Act of 1933, now has 70 bi-partisan sponsors.

I am calling upon my colleagues in the State Senate to join me in urging Congress to immediately enact HR 1489 and return the United States to the protections of the Glass Steagall Act, which prevented banking crises for 66 years. Our nation is facing an imminent collapse of the banking system in both Europe and the United States. The euro is hopelessly bankrupt -- with at least $5 to $10 trillion needed to bail out the banks and sovereign national debt across Europe.

There is a move by British officials, headed up by former Prime Ministers Gordon Brown and Tony Blair, and their cohorts at the ECB, IMF, and EU to drag in the United States Federal Reserve and Treasury Department to bail out this bankrupt European debt. However, U.S. banks are equally bankrupt, and they are up to their old schemes trading in speculative derivatives. It was the derivatives bubble collapse that triggered the 2007-2008 crisis that has never ended. The recent loss of over $3 billion by JP Morgan Chase gambling with credit default swap indexes only typifies the unbridled derivative gambling by the major US banks. Under Glass-Steagall this activity would be outlawed. Glass-Steagall would also prohibit the Federal Reserve from bailing out the European banks. This action would spur the Europeans to pass Glass-Steagall protections in their nations.

I am calling upon Congress to enact Glass Steagall, as has been promoted by economist Lyndon Larouche, Robert Reich, Luigi Zingale of the University of Chicago, and countless banking and labor officials.

I am calling upon all Kentucky members of Congress to co-sponsor HR1489. I am also urging state legislators nationwide to sponsor similar support resolutions and mobilize their members of Congress as well. The time to act is short. We do not need Summer Soldiers and Sunshine Patriots, but real patriots who will rise to the occasion. We must seize control of our banking system from the corrupt Banksters on Wall Street. Now is the time to pass Glass Steagall and return our nation to prosperity. Glass Steagall worked for 66 years. It will work again.”

-Senator Perry B. Clark, D-Louisville