Rep. Tulsi Gabbard Disappointed with Fines for Big Banks, Pushes for Real Wall Street Reform & Accountability
Washington, D.C. – Congresswoman Tulsi Gabbard (HI-02) today responded to news that due to criminal manipulation of the multi-trillion dollar currency market four large banks will pay a combined $5 billion in fines for market rigging. Additionally, Congresswoman Tulsi Gabbard announced she is a cosponsor of the Return to Prudent Banking Act of 2015. This bill will help break up some of the biggest banks and reinstate ‘Glass-Steagall’ which would separate commercial banks from investment banks, a provision that Congress removed in 1999.
“The banks that were ‘too big to fail’ in 2008 are even bigger today and their reckless actions in the past led to the worst financial crisis our nation has seen since the Great Depression, causing deep, harmful impacts that the American people are still feeling today,”said Congresswoman Tulsi Gabbard. “The fines levied against these banks do not address the fundamental problems that allowed their criminal actions in the first place, and still, no individuals have been held accountable.
"This $5 billion fine, pales in comparison to the estimated $22 trillion cost their actions had on the U.S. economy. It is a slap in the face to those families who continue to suffer today. We must bring about real reform to Wall Street, to ensure that taxpayers will no longer be forced to carry the burden of the risky actions of big banks. One important step toward this reform is reinstating the Glass-Steagall Act by passing the Return to Prudent Banking Act. The American people deserve a financial sector that works with them, and not against them, and a system that they can trust will protect them, not harm them."
According to a 2013 report by the Government Accountability Office,the 2008 financial crisis cost the U.S. economy more than $22 trillion.
The Return to Prudent Banking Act of 2015 prevents commercial banks from being an affiliate of any investment company engaged in the issue, sale or distribution of stocks, bonds, notes, or other securities. This bill will prevent Wall Street firms that take significant risks in their investments from using the Federal Deposit Insurance Corporation (FDIC) to recoup losses from speculation. The FDIC’s mission is to maintain stability in the nation’s banking system.
The bill’s lead sponsor is Congresswoman Marcy Kaptur (D-OH), and currently has 50 other cosponsors.