LEGISLATIVE RESOLUTION urging the New York State Congressional deleg-
ation to support efforts in the US House and US Senate to reinstate the
Glass-Steagall Act, including the separation of commercial and invest-
ment banking functions in effect under the 1933 Glass-Steagall Act

WHEREAS, An effective money and banking system is essential to the func-
tioning of the economy; and
WHEREAS, Under the American System policies of Alexander Hamilton,
such a healthy banking system should provide credit to multiply the
productive manufacturing, agricultural, and scientific ventures and
activities of the nation; and
WHEREAS, Such a system must function in the public interest, without
bias; and
WHEREAS, The Federal Banking Act of 1933, commonly referred to as the
Glass-Steagall Act, was written, as stated in its introduction: to
provide for the safer and more effective use of the assets of banks, to
regulate interbank control, to prevent the undue diversion of funds into
speculative operations, and for other purposes; and
WHEREAS, Since 1933, and for 66 years, 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, Under the Glass Steagall law, financial institutions were
considered "banks", and their depositors were protected, only if said
banks met certain criteria, and could not be involved in securities and
speculative instruments; thus protecting insured-deposit banks from the
risk-taking of Wall Street trading firms; and
WHEREAS, The Glass-Steagall Act was repealed in 1999, allowing banks
to use personal investment to speculate in the market, contributing to
the greatest speculative bubble and worldwide recession since the Great
Depression of 1933; and
WHEREAS, The worldwide recession of 2007-08 left millions of homes in
foreclosure; millions of jobs were lost nationwide; and has put severe
financial strains on states, counties and cities, exacerbating unemploy-
ment and stressing the social services systems; and
WHEREAS, Many of the financial industry entities were "bailed out" by
the United States Treasury at a cost of hundreds of billions of dollars
to US taxpayers, and were also granted "equity infusions", "asset guar-
antees", and "below-market rate loans from the Federal Reserve"; and
WHEREAS, Despite the cost of these bailouts, and the transfer of
savings from American citizens, and despite implementation of other
policies, financial instability has grown, such that the five major Wall
Street banks are now, in 2016, larger than in 2008; and
WHEREAS, The American taxpayers continue to be at risk for the next
round of bank failures; and
WHEREAS, The call to reinstate Glass-Steagall, has received widespread
national support from prominent economic, banking, farm, labor, academ-
ic, legislative and business leaders from all parties, and many of the
major and respected national newspapers; and
WHEREAS, The United States Senate and House of Representatives have
been making efforts to restore the protections of the Glass-Steagall
Act, and currently in the 114th Congress, Representatives Marcy Kaptur
(D-OH) and Walter Jones (R-NC) have co-sponsored H.R. 381, the current
bill calling for the reinstatement of FDR's Glass-Steagall, and in the
Senate, Senators Elizabeth Warren (D-MA), John McCain (R-AZ), Maria
Cantwell (D-WA) and Angus King (I-ME) have introduced S.1709, the "21st
Century Glass-Steagall Act of 2015."; now, therefore, be it

RESOLVED, That this Legislative Body pause in its deliberations to
urge the entire New York State Congressional delegation to support and
enact in Congress the legislation that would reinstate the Glass-Stea-
gall Act, including the separation of commercial and investment banking
functions that were in effect under Glass-Steagall, thus securing a safe
American banking system, which can protect deposits, and supply needed
credit for a productive economy, protect state finances and the well-be-
ing of our citizens, and remove any national protection of investment in
stocks, underwriting of securities or investing in or acting as guaran-
tors to derivative transactions or other activities deemed "non-bank"
activities under the Glass-Steagall law; and be it further
RESOLVED, That copies of this Resolution, suitably engrossed, be tran-
smitted to each member of the New York State Congressional delegation.