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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