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Senate Bill Report SJM 8005 — Separation of commercial and investment banking functions

Summary

This is the Senate Bill Report on SJM 8005, as of January 16, 2025, with the committee activity listed as Business, Financial Services & Trade on 1/16/25. The brief description says the measure requests that Congress enact legislation that would reinstate the separation of commercial and investment banking functions that were in effect under the Glass-Steagall act, and the sponsors are Senators Hasegawa, Stanford, Trudeau and Wellman. The background says the Glass-Steagall Act was passed in 1933 as the Banking Act and that the Gramm-Leach-Bliley Act of 1999 repealed most of it. The report lists Appropriation: None and Fiscal Note: Not requested. The testimony summary lists Senator Bob Hasegawa, Prime Sponsor, as testifying in favor.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Issuer
Congressional materials
Document type
Report
Date
2025-01-22
Case
2025 01 22 A32364 D275632 Bill Report 8005 Sbr Bft Ta 25

Cite this document

“Senate Bill Report SJM 8005 — Separation of commercial and investment banking functions.” Original at app.leg.wa.gov, dated 2025-01-22. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2025-01-22-2025-01-22-a32364-d275632-bill-report-8005-sbr-bft-ta-25/, SHA-256 041ebb4f41962373185b76fb349db795ce85a2ed7098832252b7a535fa64dd44.

Full text

                             SENATE BILL REPORT
                                  SJM 8005

                                      As of January 16, 2025

Brief Description: Requesting that Congress enact legislation that would reinstate the
     separation of commercial and investment banking functions that were in effect under the
     Glass-Steagall act.

Sponsors: Senators Hasegawa, Stanford, Trudeau and Wellman.

Brief History:
     Committee Activity: Business, Financial Services & Trade: 1/16/25.


                                     Brief Summary of Bill
           • Requests the U.S. Congress to enact legislation to reinstate the separation
             of commercial and investment banking functions that were in effect
             under the Glass-Steagall Act.


SENATE COMMITTEE ON BUSINESS, FINANCIAL SERVICES & TRADE

     Staff: Clint McCarthy (786-7319)

     Background: The Glass-Steagall Act was passed by the U.S. Congress in 1933 as the
     Banking Act, which prohibited commercial banks from participating in the investment
     banking business. Glass-Steagall was sponsored by Senator Carter Glass, a former Treasury
     Secretary, and Representative Henry Steagall, a member of the House of Representatives
     and chairman of the House Banking and Currency Committee. The act was passed as an
     emergency measure to counter the failure of almost 5000 banks during the Great
     Depression.

     The Gramm-Leach-Bliley Act of 1999 (GLBA) was passed by Congress on November 12,
     1999. The GLBA repealed most of the Glass-Steagall Act of 1933.

     Summary of Bill: The bill requests the U.S. Congress to reinstate the separation of



     This analysis was prepared by non-partisan legislative staff for the use of legislative
     members in their deliberations. This analysis is not part of the legislation nor does it
     constitute a statement of legislative intent.

Senate Bill Report                              -1-                                        SJM 8005
     commercial and investment banking functions that were in effect under the Glass Steagall
     Act.

     Appropriation: None.

     Fiscal Note: Not requested.

     Creates Committee/Commission/Task Force that includes Legislative members: No.

     Effective Date: Ninety days after adjournment of session in which bill is passed.

     Staff Summary of Public Testimony: PRO: Some things have an outsized impact on the
     economy. Glass-Steagall came as a response to the forces that caused the Great
     Depression. No insurance on deposits contributed to the onset of the Great Depression.
     Without the separation between commercial banking and investment banking, investment
     banking can use our savings to make risky bets on certain investments. Over the years,
     loopholes were made in the law. In 1999, Clinton removed the wall between commercial
     and investment banking. Once the barrier was removed, banks became overextended and
     led to the Great Recession in 2008. Since the Great Recession, there has been a movement
     to reestablish Glass-Steagall to protect our deposits.

     Persons Testifying: PRO: Senator Bob Hasegawa, Prime Sponsor.

     Persons Signed In To Testify But Not Testifying: No one.




Senate Bill Report                            -2-                                        SJM 8005

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app.leg.wa.gov
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