MEP Muscardini Files a Glass-Steagall Resolution in European Parliament

May 22, 2010 (LPAC)—On May 17, Cristiana Muscardini, Deputy Chairman of the International Trade Committee in the European Parliament, filed a resolution to be voted on in the European Parliament. The resolution is entitled "On the Advisability of Re-Establishing the Principles of the 'Glass-Steagall Act' in the New Rules To Be Defined To Overcome the Systemic Financial Crisis." It reads:

"The European Parliament, considering the various meetings of the Ecofin and Eurozone member countries to confront the crisis of the euro, which since January has lost 14% of its value with respect to the U.S. dollar, considering the previous resolutions on the financial crisis and the need to define new rules to avoid the growth of speculative bubbles,

"A. Considering the function played in the U.S.A. in 1933 by the 'Glass-Steagall Act,' which in the midst of the 'Great Depression' protected banking deposits from speculation;

"B. Considering the amendment filed in the U.S. Senate last May 6 by Democratic Sen. Maria Cantwell and Republican Sen. John McCain, as an amendment to President Obama's financial reform introduced by Sen. Chris Dodd, modeled after the Glass-Steagall legislation that separated commercial banks from investment banks, preventing the latter from using taxpayer money;

"C. Considering the inadvisability of bailing out bankrupt banking operations with taxpayer money;

"Invites the Council and the Commission

"1. To consider the advisability of referring to the principles of the 'Glass-Steagall Act' in defining new rules to overcome the systemic financial crisis;

"2. To propose initiatives to reduce the excessive expansion of virtual money and to favor actions aimed at fostering investment for development, the only type of investment that produces real wealth and that can actually contribute to reducing debt."