The following Glass-Steagall resolution was introduced on 28 January 2016 in the Michigan State Senate, and referred to the Legislature's Committee on Banking and Financial Institutions:
Michigan State Senate Resolution to Restore the Glass-Steagall Act
Senators Johnson, Young, Bieda and Gregory offered the following resolution:
Senate Resolution No. 138.
A resolution to urge the United States Congress and the President of the United States to enact legislation that would reinstate the separation of commercial and investment banking functions that was in effect under the Glass-Steagall Act.
Whereas, An effective money and banking system is essential to the functioning of the U.S. economy. Such a system must function in the public interest without any bias; and
Whereas, Since 1933, the Federal Banking Act, also referred to as the Glass-Steagall Act, has protected the public interest through the regulation of commercial and investment banking, insurance companies, and securities. Important provisions of the Glass-Steagall Act were repealed in 1999, partially contributing to the greatest speculative bubble and worldwide recession since the Great Depression; and
Whereas, The worldwide recession greatly affected our country's economy and citizens' lives. It left millions of homes in foreclosure and caused the loss of millions of jobs nationwide. The recession also put severe financial strains on states, counties, cities, and other municipalities, exacerbating unemployment and the loss of public services; and
Whereas, The U.S. House of Representatives and U.S. Senate have been making efforts to restore the protections of the Glass-Steagall Act. U.S. Representative Marcy Kaptur has introduced H.R. 381, known as the Return to Prudent Banking Act of 2015, which would revive the separation between commercial banking and the securities business in the manner provided by the Glass-Steagall Act. U.S. Senator Elizabeth Warren, along with Senators John McCain, Maria Cantwell, Angus King, and others have introduced the 21st Century Glass-Steagall Act (S. 1709), which would reduce risk for American taxpayers in the financial system and decrease the likelihood of future financial crises; and
Whereas, The Glass-Steagall Act has widespread national support from prominent economic and business leaders and national publications, including Thomas Hoenig of the Federal Deposit Insurance Corporation, former CEO of Citigroup Sanford Weill, economist Luigi Zingales, the New York Times, the St. Louis Post-Dispatch, the Los Angeles Times, and many others; and
Whereas, Resolutions demanding action to return to Glass-Steagall protections have been introduced in at least 25 states since 2013. In fact, Maine and South Dakota passed resolutions on the matter in both chambers of their legislatures in 2013. Additionally, both the Alabama and Indiana Houses of Representatives adopted resolutions urging action to reinstate Glass-Steagall in the same year; and
Whereas, Overwhelming pressure must be brought to bear on members of the U.S. House of Representatives and U.S. Senate to take action to pass this important legislation; now, therefore, be it
Resolved by the Senate, That we urge the United States Congress and the President of the United States to enact legislation that, in order to prevent American taxpayers from being called upon to fund hundreds of billions of dollars to bail out financial institutions, would reinstate the separation of commercial and investment banking functions that was in effect under the Glass-Steagall Act, prohibiting commercial banks and bank holding companies from investing in stocks, from underwriting securities, and from investing in or acting as guarantors to derivative transactions; and be it further
Resolved, That copies of this resolution be transmitted to the President of the United States, the President of the United States Senate, the Speaker of the United States House of Representatives, the members of the Michigan congressional delegation, United States Representative Marcy Kaptur, and United States Senator Elizabeth Warren.