Legislators petition Johnson on Glass-Steagall
A bipartisan group of South Dakota legislators asked Sen. Tim Johnson to hold "immediate, emergency hearings" about reinstating the Glass-Steagall Act, a repealed 1933 law that, among other things, separated commercial banks and investment banks.
"There is strong support for the Glass-Steagall Bills in the Senate and the House," the petition reads. "Our people are facing economic and social ruin. The collapse of Detroit, which used to be the U.S. arsenal of democracy, is the handwriting on the wall for economic ruin across our once strong United States."
It's signed by an interesting mix of Democrats and conservative Republicans. Democratic signers include Jim Bradford, Jason Frerichs, Dennis Feickert, Kevin Killer, Dean Schrempp and former lawmaker Frank Kloucek. Republican signers are Tim Begalka, Ryan Maher, Stace Nelson, Betty Olson, and former lawmakers Patty Miller and Lyndell Petersen (whose name is misspelled "Peterson").
Momentum for the call came from the successful passage this year of a joint resolution supporting reinstating Glass-Steagal. Senate Concurrent Resolution 6 narrowly passed the state Senate 19-16, but overwhelmingly passed the House 67-2.
The petition was released to the press by activist Tim Luke.
But Johnson, the chairman of the Senate Banking Committee, isn't interested in revisiting Glass-Steagall.
"Throughout my Chairmanship on the Banking Committee I have made oversight of Wall Street reform a top priority and have held a number of hearings on this issue of systemic risk – most recently on July 11," Johnson said in a statement. "We have learned at those hearings that most economists say a return to Glass-Steagall would not address today’s challenges. Size, risk and complexity are not synonymous, and I believe Wall Street Reform passed by Congress in 2010 provides the tools necessary to end ‘too big to fail.’"