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 or "bail-ins" could be authorized under the
Dodd-Frank Act; 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 President of the United States recently issued
an Executive Order directing the Secretary of the Treasury to
issue a report on laws, treaties, regulations, guidance,
reporting and recordkeeping requirements that inhibit Federal
regulation of the United States financial system; 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
functions in effect under the Glass-Steagall Act and support
repeal of 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
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