July 11, 2013

King joins Mass. Sen. Warren in sponsoring bill to curtail banking risks

The Associated Press

BOSTON  — U.S. Sen. Elizabeth Warren is trying to make good on a key campaign pledge.

On Wednesday, Warren and three other senators introduced a modern version of the 1933 Glass-Steagall Act which she says will protect consumers from Wall Street gambles.

The bill would separate traditional banks that have savings and checking accounts and are insured by the Federal Deposit Insurance Corporation from riskier financial institutions that offer services such as investment banking, hedge funds and private equity activities.

The original Glass-Steagall act was passed after the stock market crash of 1929, and separated commercial banks from investment banks. Many of its core provisions were repealed in 1999.

Warren was joined in introducing the bill by Republican Sen. John McCain of Arizona, Democratic Sen. Maria Cantwell of Washington and independent Sen. Angus King of Maine.

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