New York Resolution K1012
April 15, 2014 • 8:31PM

On March 31, 2014 Resolution K1012 was introduced into the New York State Assembly as K1012 urging the New York State Congressional delegation to support efforts to reinstate the Glass-Steagall separation of banks. The resolutions main sponsor is Phil Steck, who also introduced the bill last year. There are 13 official co-sponsors.

The full text of the resolution reads:

LEGISLATIVE RESOLUTION urging the New York State Congressional delegation to support efforts to reinstate the separation of commercial and investment banking functions in effect under the Glass-Steagall Act, and to support H.R.3711, H.R.129, S.985, and S.1282

WHEREAS, It is the sense of this Legislative Body to urge the New York State Congressional delegation to support efforts to reinstate the separation of commercial and investment banking functions in effect under the Glass-Steagall Act, and to support H.R.3711 - 21st Century Glass- Steagall Act of 2013, H.R.129 - the Return to Prudent Banking Act of 2013, S.985 - 21st Century Glass-Steagall Act of 2013, and S.1282 - the Return to Prudent Banking Act of 2013; and

WHEREAS, An effective money and banking system is essential to the functioning of the economy; and

WHEREAS, Such a 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, was written, as stated in its introduction: to provide for the safer and more effective use of the assets of banks, to regulate interbank control, to prevent the undue diversion of funds into speculative operations, and for other purposes; and

WHEREAS, Since 1933, the Glass-Steagall Act has protected the public interest in matters dealing with the regulation of commercial and investment banking, in addition to insurance companies and securities; and

WHEREAS, The Glass-Steagall Act was repealed in 1999, permitting members of the financial industry to exploit the financial system for their own gain in disregard of the public interest, contributing to the greatest speculative bubble and worldwide recession since the Great Depression of 1933; and

WHEREAS, The worldwide recession has left millions of homes in fore- closure; has cost the loss of millions of jobs nationwide; and has put severe financial strains on states, counties and cities, exacerbating unemployment and loss of social services; and

WHEREAS, Many of the financial industry entities were "bailed out" by the United States Treasury at a cost of hundreds of billions of dollars to American taxpayers; and

WHEREAS, Within the over 840 pages of the Dodd-Frank Wall Street Reform and Consumer Protection Act, and its tens of thousands of appended pages of rules and regulations, there are no prohibitions that prevent "too big to fail" commercial banks and bank holding companies from investing in, or undertaking, substantial risks involving speculative securities and trillions of dollars of derivatives exposure; and

WHEREAS, The American taxpayers continue to be at risk for the next round of bank failures; and

WHEREAS, The United States Senate and House of Representatives have been making efforts to restore the protections of the Glass-Steagall Act; and

WHEREAS, Congresswoman Marcy Kaptur (D-OH), and Congressman Walter Jones (R-NC) have introduced H.R.129, known as the Return to Prudent Banking Act of 2013, which calls for reviving the separation between commercial banking and the securities business in the manner provided in the Glass-Steagall Act, which Act has over 80 co-sponsors as of February 2014; and

WHEREAS, Subsequent to H.R.129, Congressmen Walter Jones (R-NC) and John Tierney (D-MA) have introduced H.R.3711, the "21st Century Glass- Steagall Act of 2013"; and, in the United States Senate, Senator Tom Harkin (D-IA) has introduced S.985 to restore Glass-Steagall provisions; and Senators Elizabeth Warren (D-MA), John McCain (R-AR), Maria Cantwell (D-WA) and Angus King (I-ME) have introduced S.1282, the "21st Century Glass-Steagall Act of 2013", with 10 co-sponsors as of February 2014; and

WHEREAS, The call to reinstate Glass-Steagall, H.R.129, and other legislative initiatives have received widespread national support from prominent economic, banking, labor, academic, legislative and business leaders, many of the major and respected national newspapers and many others; now, therefore, be it

RESOLVED, That this Legislative Body pause in its deliberations to urge the New York State Congressional delegation to support and enact legislation that would reinstate the separation of commercial and investment banking functions that were in effect under the Glass-Stea- gall Act, prohibiting commercial banks and bank holding companies from investing in stocks, underwriting securities or investing in or acting as guarantors to derivative transactions, in order to prevent American taxpayers from being called upon to fund hundreds of billions of dollars to bail out financial institutions, as well as to secure a safe American banking system, which can protect deposits, and supply needed credit for a productive economy; and be it further

RESOLVED, That copies of this Resolution, suitably engrossed, be transmitted to each member of the New York State Congressional delegation.