GOP lawmakers plan to repeal the Glass-Steagall Act
A bill by lawmakers in the House of Representatives would repeal the so-called Glass-steagall Act, which was the first law that created a firewall between commercial banks and investment banks.
A bipartisan group of House lawmakers and business groups are sponsoring the bill, which would end the separation between commercial and investment banking.
“Glass-stegallagall is an integral part of our financial reform efforts,” said Rep. Mike McIntyre, a Republican from South Carolina and the lead sponsor of the House bill.
“It’s the first thing that made the difference for the banking system to become solvent, and it should be preserved for the benefit of the American people.”
The bill, dubbed the “American Credit Reform Act,” is co-sponsored by House Majority Leader Kevin McCarthy, R-Calif., and Rep. Ron DeSantis, R, Fla.
The bill is expected to be introduced by the end of the week, according to a news release from McCarthy’s office.
The move comes as the banking industry is preparing to file a lawsuit in federal court against the administration and Congress for failing to fully repeal the law.
The industry, which has been pushing for a repeal of Glass-stg, has been among the most vocal critics of the financial reforms enacted by the Obama administration.
Republicans have long accused Obama of failing to implement the law and argue that the Republican-controlled Congress has ignored them when they have tried to do so.
But the financial services industry is also pushing for the repeal of the Glass Steagall Act to help the economy recover from the financial crisis.
In a statement, the National Association of Realtors, which represents the industry, said in a statement that the repeal “will make it easier for banks and the American taxpayer to rebuild confidence in the financial system, while making the financial industry safer.”
The legislation also would require the Federal Reserve to create a new Glass-Stg Board to oversee the banking sector.
Under the proposal, the Fed would oversee the Glass Stg Board, which could include a bank regulator or a federal securities regulator.
It would also require the Fed to establish an independent panel to oversee financial markets, which is currently a federal agency.
The proposal also would allow the Federal Deposit Insurance Corporation to intervene if a bank or financial institution needs a bailout and the Fed decides that a bailout would be in the public interest.
The House bill also would prevent the Fed from creating a new regulation to limit the amount of leverage in commercial banking that can exist in the banking systems.
The legislation would also create a separate federal regulator for insurance companies, such as reinsurance companies and pension funds, and would prohibit the Fed and Treasury from creating another regulator.
The White House has argued that the financial sector would benefit from the repeal because it would mean fewer regulations and would prevent another financial crisis from developing.
The Treasury Department has said that the Glass Act has served the U.S. economy well.
The financial sector contributed $10 trillion to the U