“Elizabeth Warren’s legislative attempt to reinstate Glass-Steagall may further galvanize the movement to rein in the big banks. But that does not mean her bill is going anywhere in Congress.
“Analysts consider her bill — cosponsored by Sen. John McCain, R-Ariz., and two others — dead on arrival. Not only do several top policymakers view a 2013 version of the Glass-Steagall Act as inconsistent with modern finance, but many have put their stock in implementing the 2010 Dodd-Frank Act as the preferred method to fix the system. And some say yet another proposal for ending too big to fail is just diluting the issue.
“‘Absent another crisis or lightning striking, there’s little chance’ of the legislation passing right now, said Edward Mills, a policy analyst at FBR Capital Markets.
“Warren, a Massachusetts Democrat, teamed up earlier this month with McCain as well as Sens. Maria Cantwell, D-Wash., and Angus King, I-Maine, to introduce the 21st Century Glass-Steagall Act. The bill aims essentially to do the same thing as the original Depression-era law, which was repealed in the nineties, by requiring firms within five years to separate commercial banking supported by government-backed deposits from their swaps and investment banking activities.”
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