Senator Elizabeth Warren along with John McCain, Maria Cantwell and Angus King, have introduced "The 21st Century Glass-Steagall Act," a bill aimed at separating core banking activities from insurance, securities and other non-bank financial services endeavors.
The bill, S. 1282, is clearly another indication that the risks and inequities associated with too-big-to-fail are continuing to garner attention in Washington.
The IBAT Board of Directors in late June reaffirmed their support of the Brown-Vitter bill, requiring higher capital levels for banks over $500 Billion in assets, and taking direct aim at the myriad problems of too-big-to-fail. "We are pleased that the debate on too-big-to-fail is moving forward and the visibility of this issue continues to increase," said Christopher Williston, IBAT President and CEO. "It is something that needs to be addressed, and soon. Obviously there are significant headwinds, and the largest of the financial conglomerates want no part of these proposals. We will continue to push for more parity, and our ultimate hope is for a real two-tiered regulatory system – something that Elizabeth Warren and others have embraced."
Further information is available on Senator Warren's website, and we will be closely monitoring the progress of this initiative.