Kaptur Calls for Restoration of Protections for Depositors Amid Volatile Market Conditions
WASHINGTON, D.C.— Congresswoman Marcy Kaptur (OH-9) issued the following statement at the opening of U.S. markets today after the Dow Jones Industrial Average plummeted more than 1,000 points yesterday morning and ended the day down 588 points.
“The roller coaster world of global finance has created a world of distorted values,” said Rep. Kaptur. “Currency manipulation has exploded our trade deficits. Heavily leveraged assets and obscure derivative instruments have caused insecurity and volatility in the U.S. marketplace.As a result, today’s global marketplace does not accurately reflect the true worth of things in the U.S. economy.
“Average depositors deserve to have their life savings protected from the distortions and derivatives of Wall Street investors, global money center banks, and securities dealers that play on the global field. For more than half a century, the Glass-Steagall Actstood as the firewall protecting the life savings of Main Street families from the financial games played on Wall Street. It’s time to put that firewall back.”
Congresswoman Kaptur is the sponsor of H.R. 381, the Return to Prudent Banking Act of 2015, which would reinstate the regulatory barriers established by the Glass-Steagall Act of 1933. That law restricted affiliations between traditional banks and investment firms due to the risks and dangers posed by the financial activities conducted by investment firms. Those restrictions were repealed under the 1999 Gramm-Leach-Biley Act.
Rep. Kaptur’s bipartisan Glass-Steagall bill has 65 co-sponsors in the House of Representatives. It has been endorsed by the AFO-CIO, the International Federal of Professional and Technical Engineers, and the League of United Latin American Citizens.