Resolution to Re-Establish Franklin Roosevelt’s Glass-Steagall Standard
Whereas, the principled separation of banking and commerce was mandated by the Glass Steagall Act (part of the Banking Act of 1933); and was carried forward into the Bank Holding Company Act of 1956, resulting in the isolation of banking from securities which was designed to (1) separate investment banking from commercial depository banking; (2) prevent self-dealing and other financial abuses; and (3) limit stock market speculation as well as all other types of speculation; and
Whereas, the deregulation of banking generally, and the repealing of the Glass-Steagall standard in particular, promoted by former Federal Reserve Chairman Alan Greenspan, and effectuated by the circles around then Secretary of the Treasury, Lawrence Summers, have resulted in the amassing of an unpayable debt, which is mostly comprised of worthless securities that have infected the entire global monetary and financial system, whose value is conservatively estimated in the quadrillion dollars; and
Whereas, the attempts by both the Bush and Obama Administrations to pay the aforementioned debt obligations through bail-out, i.e. hyperinflationary money pumping, has resulted in the looting of the physical economy, the citizenry, and the destabilization of local, state, and federal governments including budget shortfalls, increased unemployment, and savage fiscal austerity,
Therefore it be resolved, that the Los Angeles County Democratic Party calls for an immediate return to Franklin Roosevelt’s Glass Steagall standard so that the real and fictitious debt could be sorted out in a bankruptcy reorganization process led by the United States Treasury, and
Be it further resolved that a copy of this resolution be sent to all the Democratic State Legislators and the California Congressional delegation.
Submitted by Quincy O’Neal, 44th AD / FRLDC
Passed by LACDP 1/12/10