SENATE DOCKET, NO. 1891        FILED ON: 9/27/2013

SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No.         

The Commonwealth of Massachusetts

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PRESENTED BY:

James B. Eldridge, (BY REQUEST)

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To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:

The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying resolution:

Resolutions calling on the United States Congress to support prudent banking.

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PETITION OF:

SENATE DOCKET, NO. 1891        FILED ON: 9/27/2013

SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No.         

The Commonwealth of Massachusetts

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In the Year Two Thousand Thirteen

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Resolutions calling on the United States Congress to support prudent banking.

WHEREAS, an effective money and banking system is essential to the functioning of the economy; and

WHEREAS, since 1933, and for 66 years, the Glass-Steagall Act protected the public interest in matters dealing with the regulation of commercial and investment banking, in addition to insurance companies and securities; and

WHEREAS, the Glass-Steagall Act of 1933 was repealed in 1999, permitting members of the financial industry to exploit the financial system for their own gain in disregard for the public interest; and

WHEREAS, many of the financial industry entities were "bailed out" by the United States Treasury at a cost of hundreds of billions of dollars to the American taxpayers; and

WHEREAS, the expanding derivatives holdings and actual insolvency of the largest banks continue to put the American taxpayers at risk for the next round of bank failures; and

WHEREAS, these bank failures will lead to more bailouts as well as the implementation of the "bail-in" policy provided for in Title II of the Dodd-Frank Act, where public and private deposits, pensions, and savings in banks will be seized to recapitalize banks; and

WHEREAS, by contrast, an orderly bankruptcy would be made possible by the reinstatement of the Glass-Steagall Act of 1933; and

WHEREAS, Congresswoman Marcy Kaptur and Congressman Walter Jones have introduced H.R.129, “Return to Prudent Banking Act of 2013”, and Senator Tom Harkin has introduced the Senate companion bill, S.985, which calls for reviving the separation between commercial banking and the securities business in the manner provided in the Glass-Steagall Act of 1933; and

WHEREAS Senators Elizabeth Warren, John McCain, and Maria Cantwell have introduced S.1282, “21st Century Glass-Steagall Act of 2013”, now therefore be it

RESOLVED, that the Massachusetts State Senate hereby calls on the 113th United States Congress to support and pass H.R.129, S.985, and S.1282 which will reinstate the separation of commercial and investment banks and bank holding companies from investing in stocks, underwriting securities or investing in or acting as guarantors to derivatives transactions, in order to prevent American taxpayers from being called upon to fund hundreds of billions of dollars to bail out or bail in financial institutions, as well as secure a safe American banking system, which can protect deposits, and supply needed credit for a productive economy; and be it further

RESOLVED, that a copy of these resolutions be transmitted forthwith by the Clerk of the Massachusetts Senate to the presiding officer of each branch of the 113th United States Congress and to the members of those branches from the Commonwealth of Massachusetts.