Kaptur, Jones introduce bipartisan amendment to break up the big banks and rein in Wall Street
Washington, D.C. – Congresswoman Marcy Kaptur (OH-09) and Congressman Walter Jones (NC-03) introduced to the House Rules Committee a bipartisan amendment to H.R. 10, the Financial CHOICE Act, which is set to move to the House floor for a vote this week. The Kaptur-Jones amendment removes the bill’s current language, which takes America backward on Wall Street reform, and replaces it with the Return to Prudent Banking Act, a bill led by Kaptur, which reinstates critical Glass-Steagall protections.
Kaptur and Jones will both testify at the Rules Committee hearing which will determine whether this much-needed measure will make it to the House floor for a vote.
When: June 6, 2017, 5:00 PM (estimated hearing start time)
The Return to Prudent Banking Act restores the separation of commercial and investment banking. As such, it goes far to restore stability to Wall Street and reduce the size of the mega-banks that the 2008 banking crisis and taxpayer bailout proved to be “too big to fail.” The justification for this policy is straightforward. When Congress created the FDIC in 1933, it provided abundant credit for banks from depositors and rationally restricted FDIC-insured banks from risky activities, including investment banking. Over the years, the banking industry persuaded regulators and then Congress to eliminate this separation with the enactment of the Gramm-Leach-Bliley Financial Services Modernization Act. Less than a decade later, reckless Wall Street activity led to the crash from which the nation still struggles to recover.
Kaptur and Jones have long been proponents of restoring Glass-Steagall protections to the banking system. The Return to Prudent Banking Act was reintroduced in February of this year and has the bipartisan support of 50 cosponsors. Support for the proposal was also in the Democratic and Republican party platforms.
Learn more about the bill’s history and introduction here.