Warren, McCain introduce bill to bring back Glass-Steagall

Sens. Elizabeth WarrenElizabeth Ann WarrenPossible GOP challenger says Trump doesn't doesn't deserve reelection, but would vote for him over Democrat Joe Biden faces an uncertain path The Memo: Trump pushes back amid signs of economic slowdown MORE (D-Mass.) and John McCainJohn Sidney McCainFighter pilot vs. astronaut match-up in Arizona could determine control of Senate The Hill's Morning Report — Recession fears climb and markets dive — now what? Trump makes rare trip to Clinton state, hoping to win back New Hampshire 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Glass-Steagall was first passed in 1933 but repealed during the Clinton administration, leading many progressives to argue that it contributed to the 2008 financial collapse.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 Stanley KingNew intel chief inherits host of challenges Senators ask for committee vote on 'red flag' bills after shootings Top Democrat: 'Disqualifying' if Trump intel pick padded his résumé MORE (I-Maine) and Maria CantwellMaria Elaine CantwellNative American advocates question 2020 Democrats' commitment Hillicon Valley: Trump reportedly weighing executive action on alleged tech bias | WH to convene summit on online extremism | Federal agencies banned from buying Huawei equipment | Lawmakers jump start privacy talks Lawmakers jump-start talks on privacy bill 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.

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The bill, which they first introduced in the last Congress, would separate traditional banking with checking and savings accounts from financial institutions that offer services such as investment banking, which are riskier.

"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.