Citizens Electoral Council of Australia

Media Release Thursday, 23 May 2013

Craig Isherwood‚ National Secretary
PO Box 376‚ COBURG‚ VIC 3058
Phone: 1800 636 432
Email: cec@cecaust.com.au
Website: http://cec.cecaust.com.au

Glass-Steagall breakthrough! U.S. Senator introduces bill to reinstate banking separation

There has been a major breakthrough in the now-global fight to separate essential banking services from the speculative investment banking that brought on the devastating global financial crisis.

On 16 May, the 80th anniversary of the introduction of the original 1933 Glass Steagall Act which mandated the separation of commercial and investment banking, U.S. Senator Tom Harkin, a Democrat from the state of Iowa, introduced Senate Bill 985 into the U.S. Senate to reinstate Glass-Steagall.

The introduction of S.985 follows the January introduction into the U.S. House of Representatives of Representatives Marcy Kaptur and Walter Jones’ bill to reinstate Glass-Steagall, House Resolution 129, which now has over 60 co-sponsors.

The fact that there is now a Senate bill to reinstate full separation of commercial banking from all other brokerage and speculative activities undermines the Obama administration’s intention to choke in the Senate any moves to Glass-Steagall coming from the House of Representatives.

Overwhelming support

Click here to view a 5-minute YouTube video by former Clinton Labor Secretary Robert Reich demonstrating the breadth of support for Glass-Steagall among bankers who now regret its repeal, regulators, and politicians.

U.S. physical economist and Glass-Steagall champion Lyndon LaRouche on 17 May congratulated Sen. Harkin for introducing S. 985 in spite of massive counter-pressure from the Obama White House and the Senate leadership. “This is a very important new development,” LaRouche declared. “It will have very significant impact for very obvious reasons. All of the efforts to suppress this action have been defeated. This is a new game. The agenda has changed. Despite all of the efforts to prevent this action, Sen. Harkin has taken the initiative. This is not yet a complete victory, but it shows that the situation is not as hopeless as the Senate Leader [Democratic Senator Harry Reid] had hoped.”

The President of America’s National Farmers Union, Roger Johnson, also congratulated Sen. Harkin, and Rep. Kaptur, “for introducing legislation to reinstate the Glass-Steagall Act, which would help protect the U.S. economy from widespread collapse.”

“Congress must learn from the past in order to prevent future financial crises,” said Johnson in a 22 May release. “The Federal Government, in its deregulatory zeal of the 1990s, repealed important laws like Glass-Steagall that separated commercial banking from investment banking. Doing so helped to set up the Great Recession.” The Dodd-Frank bill “made some improvements, but stopped short of the safeguards provided by Glass-Steagall… Sen. Harkin and Rep. Kaptur deserve great thanks,” said Johnson, “for bringing these reforms back to the table, and I urge all members of Congress to support prudent financial protections.”

The 22 May edition of a central Iowa newspaper, the Marshalltown Times-Republican, published a letter by a rancher, Dan Schmitt, congratulating Harkin, and urging citizens of Iowa to thank him:

“Senator Harkin went against his own party and the administration to correct the repeal of the Glass-Steagall, which was the single most important cause of the financial crash of 2007-2008, and we have been in economic free fall since that collapse. Glass-Steagall had served us well for 66 years and protected our families and banks from financial collapse.

“Appropriately, Senator Harkin took action on May 16, the 80th anniversary of the introduction of the original Glass-Steagall Act into the House of Representatives by Rep. Henry Steagall. Again, congratulate and thank Senator Harkin for taking this great action; it will make for easier living. This will not only help us in the U.S., but also all of Europe whose citizens are begging for us to pass Glass-Steagall since they do not have this type of government. So I beg you to do your part in this great action and get more sponsors. Restoring Glass-Steagall will open the door to a full return to a robust, productive, agro-industrial economy.”

Citizens Electoral Council leader Craig Isherwood said today, “Sen. Harkin’s move means restoring Glass-Steagall is much more likely. This is a signal to nations such as Australia to seriously look at enacting similar banking separation, which Australia needs urgently. If Glass-Steagall passes in the U.S., it changes the rules for the whole global financial system for the better, and Australia must be prepared.

“Join the CEC to make sure Australia goes this way,” he appealed.

Click here for a free copy of the May 24, 2013 Executive Intelligence Review magazine, which covers in depth the significant breakthrough represented by Sen. Harkin’s bill, and examines what it means for opening the door to real economic development, and the dangers of a backlash from the City of London.

Click here to join the CEC as a member.

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