By Kevin Cirilli - 07/07/15 04:02 PM EDT
Sens. Elizabeth WarrenElizabeth WarrenJuan Williams: Verdict on big debate will be instantaneous WATCH LIVE: Warren campaigns for Clinton in NH Fifteen years since pivotal executive order, STORM Act could help fight terror finance MORE (D-Mass.) and John McCainJohn McCainOvernight Defense: Debate night is here | Senate sets vote on 9/11 veto override | Kerry, McCain spar over Syria Kerry fires back at McCain: I'm not 'delusional' House to vote on ObamaCare mandate exemption Tuesday MORE (R-Ariz.) are reintroducing legislation to revive the Glass-Steagall Act, which would force big banks to split their investment and commercial banking practices.
Glass-Steagall was first passed in 1933 but repealed during the Clinton administration, leading many progressives to argue that it contributed to the 2008 financial collapse.
Warren and McCain, along with their cosponsors, Sens. Angus KingAngus KingWells CEO Stumpf resigns from Fed advisory panel Pentagon chief: 9/11 bill could be used against US troops GOP chairman: White House ‘running rogue’ on water rule MORE (I-Maine) and Maria CantwellMaria CantwellUS wins aerospace subsidies trade case over the EU Wells CEO Stumpf resigns from Fed advisory panel Overnight Energy: Lawmakers kick off energy bill talks MORE (D-Wash.), said in a statement that the legislation would make big banks that are "too big to fail" smaller and safer and minimize the likelihood of a government bailout.
"Despite the progress we've made since 2008, the biggest banks continue to threaten our economy," said Warren, an ardent Wall Street critic, in a statement. "The biggest banks are collectively much larger than they were before the crisis, and they continue to engage in dangerous practices that could once again crash our economy."
McCain said the repeal of Glass-Steagall led to "a culture of dangerous greed and excessive risk-taking" in the banking industry.
"Big Wall Street institutions should be free to engage in transactions with significant risk, but not with federally insured deposits," McCain said in a statement.
Many of President Clinton's former advisers vehemently deny claims that repealing the law brought on the financial crisis, instead pointing to problems in the housing market and risky lending by banks.