PRINTER'S NO. 2019
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE RESOLUTION
No.
411
Session of
2015
INTRODUCED BY FOLMER, DINNIMAN, HUTCHINSON AND MENSCH,
JULY 7, 2016
REFERRED TO BANKING AND INSURANCE, JULY 7, 2016
A RESOLUTION
Urging the Congress of the United States to enact legislation to
reinstate the separation of commercial and investment banking
functions in effect under the Glass-Steagall Act and support
the adoption of S.1709 and H. Res.381, which repeal the Dodd-
Frank Wall Street Reform and Consumer Protection Act.
WHEREAS, An effective monetary and banking system is
essential to the functioning of the economy; and
WHEREAS, Since 1933, a portion of the Banking Act of 1933,
known as the Glass-Steagall Act, protected the public interest
in matters dealing with the regulation of commercial and
investment banking and insurance companies and securities; and
WHEREAS, The Glass-Steagall Act was partially repealed in
1999; and
WHEREAS, The repeal contributed to the greatest speculative
bubble and worldwide recession since the Great Depression; and
WHEREAS, The Comptroller of the Currency reports major banks
in the United State have more than $237 trillion in derivatives
on the books of insured banks and all have superpriority to be
honored in a banking crisis; and
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WHEREAS, The Dodd-Frank Wall Street Reform and Consumer
Protection Act (the Dodd-Frank Act) enhances the Federal
Reserve's authority to make broad extensions of credit to
struggling financial entities, sometimes called "bailouts"; and
WHEREAS, Some fear that activity similar to the confiscation
of customer deposits by Cyprus and Italian banks could be
authorized under the Dodd-Frank Act; and
WHEREAS, A joint paper by the Federal Deposit Insurance
Corporation and the Bank of England dated December 10, 2012,
discusses plans to deliver clear title to banks of depositor
funds; and
WHEREAS, Few depositors realize that banks legally own the
depositors' funds once they are put into a bank, making their
money the bank's money and making depositors' unsecured
creditors holding IOUs or promises to pay; and
WHEREAS, Banks had previously been obligated to pay
depositors' money back on demand in the form of cash, however,
under the plan put forth by the Federal Deposit Insurance
Corporation and the Bank of England, IOUs are converted into
"bank equity" where the bank gets the money and depositors
acquire stock in the bank; and
WHEREAS, The Congress of the United States has been making
efforts to address concerns with the Dodd-Frank Act by restoring
protections under the Glass-Steagall Act; and
WHEREAS, The Glass-Steagall Act states taxpayer dollars
should be used to protect taxpayers, not private entities;
therefore be it
RESOLVED, That the Senate of the Commonwealth of Pennsylvania
urge the Congress of the United States to enact legislation to
reinstate the separation of commercial and investment banking
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functions in effect under the Glass-Steagall Act and support the
adoption of S.1709 and H. Res.381, which repeal the Dodd-Frank
Wall Street Reform and Consumer Protection Act; and be it
further
RESOLVED, That the legislation prohibit commercial banks and
bank holding companies from investing in stocks, underwriting
securities or investing in or acting as guarantors to derivative
transactions; and be it further
RESOLVED, That the prohibition will prevent American
taxpayers from being asked to fund a bailout of financial
institutions that amounts to hundreds of billions of dollars;
and be it further
RESOLVED, That copies of this resolution be sent to the
President of the United States, the presiding officers of each
house of Congress and to each member of Congress from
Pennsylvania.
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