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Maine US Sen. King Joins Effort to Rein in Bank Risks
07/11/2013 04:03 PM ET  

On Thursday, Sen. King joined Sen. Elizabeth Warren and two other senators to introduce an updated version of the 1933 Glass-Steagall Act, which separated commercial and investment banks.

BOSTON (AP) _ U.S. Sen. Elizabeth Warren is trying to make good on a key campaign pledge.

On Thursday, the Massachusetts Democrat and three other senators, Sen. Angus King of Maine, introduced a modern version of the 1933 Glass-Steagall Act, which Warren says will protect consumers from Wall Street gambles.

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 Glass-Steagall 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 Many of its core provisions were repealed in 1999.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 and King were joined in introducing the bill by Republican Sen. John McCain of Arizona, and Democratic Sen. Maria Cantwell of Washington.


 

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