SR 1 (LSB 1659XS (2) 87)

SENATE RESOLUTION NO. 1

BY  PETERSEN

A Resolution urging 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 previously in effect under the federal Glass-Steagall Act.

   WHEREAS, an effective money and banking system is essential to the functioning of the United States economy; and
   WHEREAS, 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, 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   WHEREAS, the Glass-Steagall Act was repealed in 1999, partially contributing to the greatest speculative bubble and worldwide recession since the Great Depression of 1933; and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 foreclosure and caused the loss of millions of jobs in the United States; and
   WHEREAS, the worldwide recession has put severe financial strain on states, counties, and cities, exacerbating unemployment and the loss of public services; and
   WHEREAS, the United States Congress has been making efforts with bipartisan support to reinstate the protections of the Glass-Steagall Act; and
   WHEREAS, Congresswoman Marcy Kaptur introduced H.R. 381, known as the Return to Prudent Banking Act of 2015, and Senator Elizabeth Warren introduced S. 1709, known as the 21st Century Glass-Steagall Act of 2015, that would reinstate the separation between commercial banking and the securities business in the manner provided in the Glass-Steagall Act; and
   WHEREAS, resolutions demanding action to reinstate the protections of the Glass-Steagall Act have been introduced in many states since 2013; and
   WHEREAS, reinstatement of the protections of the Glass-Steagall Act has support from national labor organizations, economic and business leaders, and newspaper publications; NOW THEREFORE,

   BE IT RESOLVED BY THE SENATE, That the Iowa Senate urges 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 in effect under the Glass-Steagall Act and that would prohibit 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; and

   BE IT FURTHER RESOLVED, That the Secretary of the Senate shall transmit certified copies of this Senate Resolution to the President of the United States, the President of the United States Senate, the Speaker of the United States House of Representatives, United States Senator Elizabeth Warren, United States Representative Marcy Kaptur, and to the members of the Iowa congressional delegation.