Liberals Roar As Bernie Sanders Joins Elizabeth Warren On Bill To Reinstate Glass-Steagall

elizabeth warren bernie sanders hell no liberal caucus

Two of the most prominent liberals in the Senate have joined forces to take on the big banks as Sen. Bernie Sanders (I-VT) has announced that he is teaming up with Sen. Elizabeth Warren (D-MA) to co-sponsor her bill that would reinstate the Glass-Steagall Act.

In a statement, Sanders said:

I strongly support Sen. Elizabeth Warren’s bill to reinstate the Glass-Steagall Act.

On July 1, 1999, while Congress was voting on the Gramm-Leach-Bliley Act to permit commercial banks, investment banks and insurance companies to merge, then-Rep. Sanders said: “I believe this legislation, in its current form, will do more harm than good. It will lead to fewer banks and financial service providers; increased charges and fees for individual consumers and small businesses; diminished credit for rural America; and taxpayer exposure to potential losses should a financial conglomerate fail. It will lead to more mega-mergers; a small number of corporations dominating the financial service industry; and further concentration of economic power in our country.”

Allowing commercial banks to merge with investment banks and insurance companies in 1999 was a huge mistake. It precipitated the largest taxpayer bailout in the history of the world. It caused millions of Americans to lose their jobs, homes, life savings and ability to send their kids to college. It substantially increased wealth and income inequality and it led to the enormous concentration of economic power in this country.

I am proud to have led the fight in the House against repealing the Glass-Steagall Act in 1999. Sixteen years ago, I predicted that such a massive deregulation of the financial services industry would seriously harm the economy. I would give anything to have been proven wrong about this but unfortunately what happened seven years ago was even worse than I predicted.

Today, not only must we reinstate this important law, but if we are truly serious about ending too big to fail, we have got to break up the largest financial institutions in this country. If an institution is too big to fail, it is too big to exist.

The legislation to reinstate Glass-Steagall was introduced by Democratic Senators Warren and Cantwell (D-WA) along with Republican John McCain earlier this month. At the time, Warren said, “Despite the progress we’ve made since 2008, the biggest banks continue to threaten our economy. The biggest banks are collectively much larger than they were before the crisis, and they continue to engage in dangerous practices that could once again crash our economy. The 21st Century Glass-Steagall Act will rebuild the wall between commercial and investment banking and make our financial system more stable and secure.”

It is at this point that the obvious must be stated. Despite the support of McCain, Senate Republicans are going to squash this bill. However, the point of this legislation isn’t passage. Congressional liberals have quickly become experts as using their minority status to introduce publicly popular legislation that raises the profile of important issues while putting Republicans on the hot seat by forcing them to defend positions that place them in opposition to a majority of the public.

The judging of proposed legislation based on odds of passage promotes a myopic view that ignores long-term goals and the big picture. Liberals are trying to change the public discussion on issues like the big banks and financial reform, but to begin that conversation the public must have the opportunity to become aware and informed.

Republicans thrive when voters and constituents are uninformed.

The repeal of Glass-Steagall was signed into law by former President Clinton, who has continued to defend his deregulation. Glass-Steagall could be a thorny issue for Hillary Clinton on the Democratic primary campaign trail. The post-Great Recession era is not the go-go 90s. Senate liberals are fighting to keep the country from repeating the economic mistakes of the recent past.

23 Replies to “Liberals Roar As Bernie Sanders Joins Elizabeth Warren On Bill To Reinstate Glass-Steagall”

  1. Unless we can get 15 to 20 republicans to sign on this isn’t going anywhere because we know there will be at least 8 dummycrats that will try to kill it.

    That being said how will they try to sell it to the average American in 30 seconds or less. Lets face it you can have all the facts graphs experts but if it doesn’t fit on a bumper sticker the majority eyes will glaze over after the first 2 paragraphs and they will throw their hands up and say MEH

  2. Simple. We tell them that the banks are now being allowed to write the bills that Republicans are passing.

    In the budget passed last NovDec(?) Citibank wrote into the budget an amendment that makes the taxpayers responsible for any financial crisis caused by the banks reckless trading. 2008 all over again.

    IMPO, this was a fail by the president. I know that a budget needed to pass to keep the government operating, but, it was disappointing at best.

    How much longer do we let big corporations and the banks dictate how government is run?

    Now that that rant is over, good going Sens.Warren and Sanders. Of course we know the GOP/TP will never allow this bill to even get out of committee, let alone to the floor, but maybe, just maybe, if Democrats get out and vote we might just might make that possible in 2016. And Clinton better think twice before dismissing the effort.

  3. I wish it was that simple. Voters have voted not to allow fracking in their cities, towns and counties only to be overridden by the state because of the oil companies and they still vote for the same people who screwed them. I have no faith in the common sense of the average American

  4. This is what we are dealing with people

    McConnell proposes long-term highway bill at the expense of retirees and the disabled
    Democrats on both sides of Capitol Hill have been demanding a long-term funding bill for the highway trust fund and an end to the last-minute, short-term funding mechanisms that have been the norm for years now. Senate Majority Leader Mitch McConnell’s opening bid to give Democrats just that is typically diabolical: you can have your bill, but at the expense of retirees and the disabled.

    And you people think just because your heroes propose what is needed wont have a poison pill in it to hurt people if it ever came up for a vote?

  5. Oh it gets even better: In addition, the National Committee to Preserve Social Security and Medicare warns about two other proposals that are being floated as sacrificial lambs, both coming out of the Social Security trust fund. One would cut off payments to any senior with an outstanding arrest warrant. The other proposal is to end concurrent payments of Social Security Disability Insurance and unemployment benefits.

    This is why we cant seem to win elections. The Democratic left floats pie in the sky ideas while good on its merits, doesn’t have a chance in passing while the rethugs get to hold hostages on both ends. If you want this, which the nation needs then we will fuk the people who tend to vote for you and then say in ads see Democrats took away your benefits. Lather rinse repeat.

    I would suggest concentrating on a message that people could understand. Say Glass- Steagall you get HUH. Tell them bread and butter issues then they will follow you

  6. watch Clinton squirm and evade answering on this one……I kind of wonder if Bernie isn’t introducing this now to pin Clinton into a corner. I also wonder if this isn’t hand writing on the wall that Warren will end up throwing her endorsement to Sanders. Hers is probably the one that matters the most. I don’t think most people in the center left of the democratic party care what Obama does in that regard….altho its Im sure a forgone given he throws his hat in with Clinton.

  7. Homework assignment. Go to the corner store and ask anyone about Glass Steagall and then post their answer

  8. TRUTH BOMB: INCOME INEQUALITY: The number 1 issue in the Nation.
    95% of the $30 trillion created wealth since 2009 has gone to the 1%. Legislators at all levels give away trillions of our money to the 1% – rich, corporations, and banks BEFORE meeting the needs of the people they are to serve. Examples: The Estate Tax for billionaires costs us a total of $334 billion, and billions more in other tax breaks. $5.3 trillion government subsidies goes to the Oil Industry and trillions more to other companies. The Federal Reserve gave over $2.7 trillion to the banks to stabilize the economy and it stabilized the 1% and even if they paid it back it resulted in increased poverty, death, and homelessness in the richest country in the world.
    These illegal legislative expenditures and refusal to serve the American people is creating a real humanitarian crisis. Legislators are cutting funding and refusing to 1. Prevent disease outbreaks, like Lyme and West Nyle diseases. 2. Depleting medical su…

  9. so i asked if anyone knew what Glass-Steagall was at the Coffee shop. The waitress said she bought a pair from a glass blower once.

  10. Warren and Sanders teaming up on this is a big story but to have the 2008 Republican presidential nominee on board is a huge statement for both parties.

  11. You also forget he is the only candidate that works for white wing militia groups who executed an entire family.

    On May 30, 2009, Raul Flores, Jr., 29, and his daughter, Brisenia Ylianna Flores,[1] 9, of Arivaca, Arizona, were murdered at home during a robbery by Shawna Forde, Jason Eugene Bush, and Albert Gaxiola, who were convicted of the murders.
    ** snip**
    During the trial, jurors were told that Forde and her accomplices gained
    entry to the Flores home by claiming they were officials looking for
    fugitives and that the suspects had the expectation of finding money and
    drugs that could be sold to finance Forde’s militia group, the
    “Minutemen American Defense”, which patrolled Arizona’s border with
    Mexico. When they found no drugs, the intruders took jewelry but,
    prosecutors said, not before fatally shooting the child and her father.

  12. To determine if someone is an adherent of the regulatory fallacy ask this question: Do you believe that given the degree that the tax burden was shifted from the rich to the middle class, was there any type of regulatory policy which would have prevented the financial crisis? If they answer yes, they are adherents to the regulatory fallacy.

    A slight variation on the regulatory fallacy is the financial innovation fallacy. As with the regulatory fallacy, both left and right versions, there is a miniscule grain of truth to it. Financial innovations such as credit default swaps and regulatory changes like repeal of the Glass-Steagall Act slightly affected the exact timing of the onset of the depression. However, once the tax burden was shifted from the rich to the middle class it was just a matter of time before middle-class consumers became unable to absorb the increased production and service the debt that accompanied the overinvestment…”

  13. “..It is not just a coincidence that tax cuts for the rich have preceded both the 1929 and 2007 depressions. The Revenue acts of 1926 and 1928 worked exactly as the Republican Congresses that pushed them through promised. The dramatic reductions in taxes on the upper income brackets and estates of the wealthy did indeed result in increases in savings and investment. However, overinvestment caused the depression that made the rich, and most everyone else, ultimately poorer.

    Since 1969 there has been a tremendous shift in the tax burdens away from the rich on onto the middle class. Corporate income tax receipts, whose incidence falls entirely on the owners of corporations, were 4% of GDP then and are now less than 1%. During that same period, payroll tax rates as percent of GDP have increased dramatically. The overinvestment problem caused by the reduction in taxes on the wealthy is exacerbated by the increased tax burden on the middle class…”

  14. All Americans need to push their senators and congress members to pass Glass-Steagall. Right now the four biggest banks in the US are using your deposits to invest in derivates (bets in the financial world) to make huge profits. If their bets crash our government will have to bail them out again and jobs and the economy will crash, just like 2007-8. Glass-Steagall makes the banks bet with stockholders money and if the bets crash, the stock holders lose their money. Which is best for us folks on Main Street USA?

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