LEGISLATIVE RESOLUTION urging the Congress of the United States 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.129 - the Return to Prudent Banking Act of 2013

WHEREAS, An effective money and banking system is essential to the func-
tioning 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, and for 66 years, the Glass-Steagall Act
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WHEREAS, The Glass-Steagall Act was repealed in 1999, permitting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 high-hundreds of pages of the Dodd-Frank Wall
Street Reform and Consumer Protection Act, there are no prohibitions
that prevent "too big to fail" commercial banks and bank holding compa-
nies 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; and
WHEREAS, In the previous 112th Congress, the Return to Prudent Banking
Act of 2011 (HR 1489) had listed as co-sponsors from New York: New York
Congressmen and Congresswomen Louise McIntosh Slaughter (D-NY), Edolphus
Towns (D-NY), Rep. Charles Rangel (D-NY), Yvette D. Clarke (D-NY), Paul
Tonko (D-NY), and Maurice Hinchey (D-NY); and was endorsed by The Port
Jervis City Council, The Rochester & Genesee Valley Area Labor Feder-
ation AFL-CIO, The Common Council of the City of Buffalo, NY, and The
United Federation of Teachers, representing the 5 boroughs of New York
City; and
WHEREAS, The reinstatement of Glass-Steagall, and H.R.129 also has
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 the Congress of the United States be and hereby is
respectfully memorialized by this Legislative Body to support H.R.129,
and enact legislation that would reinstate the separation of commercial
and investment banking functions that were in effect under the Glass-
Steagall 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 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 tran-
smitted to the President of the Senate of the United States, the Speaker
of the House of Representatives, to each member of the Congress of the
United States from the State of New York, and Congresswoman Marcy
Kaptur.