Senate Bill Ignites Glass-Steagall Battle in U.S.

Within minutes of Sen. Elizabeth Warren’s announcement on Tuesday afternoon, that she and three co-sponsors had re-introduced their “21st Century Glass Steagall Act,” the City of London’s Financial Times published an understated note from their Washington, D.C., correspondent (“U.S. Senators Plot Glass-Steagall Resurrection”), admitting that while London counts on the Republicans to block the bill, it “will cause concern among big ‘universal’ banks.”

Too bad for Wall Street and London. Representatives of broader U.S. social forces were already jumping into action to get Congress to enact Glass-Steagall, now that both the Senate and House have bills before them. As American patriot Lyndon LaRouche, upon hearing the news, said would happen, the Senate action touched off an “igniting process,” which can’t be closed off. “Once people are told that Glass-Steagall is available, you’re going to have a shock effect,” including “a panic on Wall Street … [which will set] the pigs stampeding through the halls and streets of Manhattan,” LaRouche chuckled.

Democratic Presidential pre-candidate Martin O’Malley quickly tweeted his “thanks” to sponsors Warren, McCain, Cantwell, and King “for reintroducing Glass-Steagall. It’s essential in preventing another crash.” Inside-the-beltway daily The Hill featured how the “Warren Bill Could Create Headache for Hillary.” Progressive Change Campaign Committee co-founder Adam Green told The Hill that the bill’s introduction was “great news… Wall Street reform should be among the economic populist issues at the center of the 2016 debate.” Glass-Steagall-backer Robert Borosage of Campaign for America’s Future pointed out that “we don’t know where Hillary [clinton] stands… You can’t be a ‘champion of everyday people’ and duck taking a stand on fundamental challenges facing the country.”

Labor weighed in, with AFL-CIO Secretary General Richard Trumka issuing a statement declaring,

Americans for Financial Reform (AFR), representing a coalition of numerous national and state organizations “joined together to fix our financial sector,” had a statement out within an hour (“The Case for the 21st Century Glass Steagall Act Is Stronger than Ever”), backing the Senate action to “restore the historic division between traditional (or commercial) banking world and the casino world of trading and speculating.”

The “people’s voice” lobbying group, Public Citizen, like the AFL-CIO a member of the AFR and involved in collecting more than 700,000 signatures on a petition for Glass-Steagall last year, “enthusiastically” welcomed Glass-Steagall’s re-introduction into the Senate, writing: “Reckless banking caused the financial crash of 2008, which drained more than $12 trillion from the economy and cost millions of Americans their jobs, homes and life savings. This sensible legislation will help prevent a repeat calamity.”

Warren’s press release announcing the reintroduction is also quickly being picked up in local press, Tea Party blogs, and the like, around the country.