Warren, McCain introduce bill to bring back Glass-Steagall

Sens. Elizabeth WarrenElizabeth Ann WarrenDem lawmaker says Electoral College was 'conceived' as way to perpetuate slavery GOP rep to introduce constitutional amendment to limit Supreme Court seats to 9 Warren introduces petition to end the Electoral College MORE (D-Mass.) and John McCainJohn Sidney McCainThe Hill's 12:30 Report: Trump steps up attacks on McCain Trump: 'I was never a fan of John McCain and I never will be' Santorum: Trump should 'send emails to a therapist' instead of tweeting 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Glass-Steagall was first passed in 1933 but repealed during the Clinton administration, leading many progressives to argue that it contributed to the 2008 financial collapse.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 KingOvernight Defense: Senate rejects border emergency in rebuke to Trump | Acting Pentagon chief grilled on wall funding | Warren confronts chief over war fund budget Shanahan grilled on Pentagon's border wall funding Senators offer bipartisan bill to fix 'retail glitch' in GOP tax law MORE (I-Maine) and Maria CantwellMaria Elaine CantwellState rules complicate push for federal data privacy law Hillicon Valley: Cohen stuns Washington with testimony | Claims Trump knew Stone spoke to WikiLeaks | Stone, WikiLeaks deny | TikTok gets record fine | Senators take on tech over privacy Lawmakers slam tech industry reps at privacy hearing 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.