HOUSE OF REPRESENTATIVES	H.R. NO.	173
THIRTY-FIRST LEGISLATURE, 2022
STATE OF HAWAII

HOUSE RESOLUTION

requesting the united states congress to take action regarding the separation of commercial and investment banking functions through the reinstatement of the glass-steagall act of 1933 or similar legislation.

WHEREAS, an effective money and banking system is essential to the functioning of the economy; and

WHEREAS, banking systems must function in the public interest, without bias; and

WHEREAS, for sixty-six years, the Federal Banking Act of 1933, known as the Glass-Steagall Act, protected the public interest in matters dealing with the regulation of commercial and investment banking, in addition to insurance companies and securities; and

WHEREAS, sections of the Glass-Steagall Act were repealed in 1999, which may have partially contributed to the speculative financial bubble and the Great Recession, which was a worldwide recession that occurred between 2007 and 2009; and

WHEREAS, the Great Recession left millions of homes in foreclosure and resulted in millions of lost jobs nationwide; and

WHEREAS, the Great Recession placed severe financial strain on states, counties, and cities, exacerbating unemployment and loss of public services; and

WHEREAS, efforts have been made by the United States Senate and United States House of Representatives to restore certain protections of the Glass-Steagall Act; and

WHEREAS, in 2017, Senator Elizabeth Warren introduced S. 881, known as the 21st Century Glass-Steagall Act of 2017, which aimed to reduce risks to the financial system by limiting banks' ability to engage in certain risky activities and limiting conflicts of interest and reinstate certain Glass-Steagall Act protections; and

WHEREAS, the reinstatement of the separation between commercial banking and investment banking is necessary to strengthen the country's financial system and put an end to the financial practices and speculative activities that led to the collapse of the housing market and the Great Recession; now, therefore,

BE IT RESOLVED by the House of Representatives of the Thirty-first Legislature of the State of Hawaii, Regular Session of 2022, that the United States Congress is requested to pass legislation that would reinstate regulations requiring the separation of commercial and investment banking functions that were in effect under the Glass-Steagall Act, including prohibitions aimed at preventing commercial banks and bank holding companies from investing in stocks, underwriting securities, or investing in or acting as guarantors to derivative transactions; and

BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Majority Leader of the United States Senate, Speaker of the United States House of Representatives, and members of Hawaii's congressional delegation.

OFFERED BY:

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Report Title:

Glass-Steagall Act of 1933; Reinstatement; United States Congress; Banking