U.S. Senator Elizabeth Warren said she and a bipartisan group of lawmakers are introducing a bill aimed at re-creating the Glass-Steagall Act, the Depression-era measure that separated commercial and investment banking.
'Banking should be boring', Warren, a Massachusetts Democrat, said Thursday in a conference call with reporters. 'Anyone who wants to take big risks should go to Wall Street and should stay away from the basic banking system'.
Bloomberg News reports that the bill sponsored by Warren along Senators John McCain, an Arizona Republican, Maria Cantwell, a Washington Democrat, and Angus King, a Maine independent, would separate traditional banks that offer checking and savings accounts insured by the Federal Deposit Insurance Corp. from 'riskier financial institutions'.
The latter category includes companies involved in investment banking, insurance, swaps dealing, hedge funds and private equity, according to the lawmakers’ statement.
Warren, who announced plans for the bill at a Senate Banking Committee hearing on Dodd-Frank Act implementation, told regulators testifying before the lawmakers that she didn’t expect them to back her right away.
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