In what has become an annual event during her time in Congress, Sen. Elizabeth Warren (D-Mass.) has once again teamed up with Sen. John McCain (R-Ariz.) and Angus King (I-Maine) to file legislation that would restore and modernize the Glass-Steagall Act.
The bill, the 21st Century Glass-Steagall Act, seeks to separate traditional banks that hold savings and checking accounts insured by the Federal Deposit Insurance Corporation from financial institutions that offer higher-risk services such as investment banking, insurance, swaps dealing, and hedge fund and private equity activities. The legislation also separates depository institutions from products that did not exist when Glass-Steagall was originally passed, including structured and synthetic products, complex derivatives, and swaps.
