US Sen. Warren pushing bill to rein in bank risks

AP News
Posted: Jul 11, 2013 5:16 PM

BOSTON (AP) — Massachusetts' U.S. Sen. Elizabeth Warren is trying to make good on a key campaign pledge to protect consumers from Wall Street gambles.

The Democrat and three other senators Thursday introduced a modern version of the 1933 Glass-Steagall Act. 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 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 Many of its core provisions were repealed in 1999.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 Arizona Republican John McCain, Washington Democrat Maria Cantwell and Maine independent Angus King.