West Virginia House Resolution for Glass-Steagall
February 28, 2013 • 10:51AM


(By Delegates Manypenny, Campbell, Canterbury, Diserio, Eldridge, A. Evans, Ferro, Fleischauer, Fragale, Guthrie, Hartman, Jones, Longstreth, Lynch, Moye, L. Phillips, R. Phillips, M. Poling, Poore, Reynolds, Romine, Skinner, R. Smith, Sponaugle, Stephens, Stowers, Tomblin, Walker, Walters, Wells, White and Young)

Expressing support of the House of Delegates urging Congress to enact H. R. 129, the “Return to Prudent Banking Act of 2013.”

Whereas, An effective monetary and banking system is essential to a properly functioning economy; and

Whereas, An effective monetary and banking system must function in the public interest without bias; and

Whereas, The Federal Banking Act of 1933, commonly referred to as the Glass-Steagall Act, protected the public interest in matters dealing with the regulation of commercial and investment banking and insurance companies and securities firms; and

Whereas, The Glass-Steagall Act was repealed in 1999, permitting members of the financial industry to exploit the financial system for their own selfish gain without regard of the public interest; and

Whereas, Many of the financial industry entities were saved by the United States Treasury at a cost of billions of dollars to American taxpayers; and

Whereas, Within the hundreds of pages of the Dodd-Frank Wall Street Reform Act, there are no prohibitions preventing "too big to fail" financial services organizations from investing in or undertaking substantial risks in trillions of dollars of derivative contracts; and

Whereas, The American taxpayers continue to be at risk for the next round of bank failures with enormous risks undertaken by financial services conglomerates; and

Whereas, Congresswoman Marcy Kaptur has introduced H.R. 129, known as the Return to Prudent Banking Act of 2013, to reinstate the provisions of the Glass-Steagall Act; and

Whereas, H.R. 1489, the identical bill in the 112th Congress, gained eighty-four bipartisan cosponsors; and

Whereas, It is vital that the same bill be introduced in the United States Senate; and

Whereas, Glass-Steagall has received wide national support, the AFL-CIO, the American Federation of Teachers, the International Association of Machinists, from prominent economic and business leaders, including Thomas Hoenig of FDIC, Sanford Weill, former CEO of Citibank and economist Luigi Zingales to the New York Times, the St. Louis Post Dispatch, the Los Angeles Times; therefore, be it

Resolved by the Legislature of West Virginia:

That the House of Delegates hereby strongly urges the United States Congress to enact H.R. 129, pending before the 113th Congress, to reinstate the restrictions of the Banking Act of 1933, commonly referred to as the Glass-Steagall Act, that prohibited commercial banks and bank holding companies from investing in stocks, underwriting securities or investing in or acting as guarantors in derivative transactions, in order to prevent American taxpayers from again being called upon to fund hundreds of billions of dollars to bail out financial institutions; and, be it

Further Resolved, That the Clerk of the House of Delegates forward a certified copy of this resolution to President of the United States, the Majority Leader of the United States Senate, the Speaker of the United States House of Representatives, congressional delegates of each state in the United States and each member of West Virginia's congressional delegation.