Ten years ago yesterday, our country made a fateful decision — to repeal the New Deal-era regulations that protected our banking system from excessive risk.
As Dan Froomkin wrote on Huffington Post yesterday, I predicted at the time that letting traditional banks merge with investment banks could lead to massive taxpayer bailouts within ten years.
Unfortunately only seven other Senators stood with me to oppose the repeal of these regulations that had protected us since the Great Depression.
Well we've now seen what happens when we let the fox guard the henhouse.
It's time to restore oversight to the financial sector.If you'd like to join me in supporting legislation that separate FDIC insured banks from the risks of investment banks, you can click here to stand with me.
Even John Reed, the ex-chairman of financial mega-firm Citigroup and one of the chief proponents of repealing Glass-Steagall, recently admitted that Congress was wrong to repeal these provisions. Reed believes returning to a separation of retail banking and investment banking would "go a long way toward building a more robust financial sector."
Unfortunately, John Reed is the exception on Wall Street and not the rule.
For the sake of our nationwide economic stability, it's time to begin the tough, commonsense work it's going to take to safeguard our economy.
Please click here to sign on as a cosponsor to help end the "too big to fail" doctrine that ends up having average taxpayers bailing out the biggest banks.
We have made steps earlier this year to largely stop the bleeding in our current crisis. But in order to fully heal, and make sure we maintain a healthy economy for years to come, we have to fix these long-term issues.
Thanks for your help. Together we fix our economy and build a stronger economic future!