Mon July 22, 2013
Delaware Officials Oppose New Financial Industry Restrictions
Delaware’s two senators say they oppose separating commercial and investment banking that’s contained in a measure authored by fellow Democrat Massachusetts Senator Elizabeth Warren.
It would return the banking system back towards the Depression-era Glass-Steagall law that was repealed in 1999.
The law was aimed at protecting federally insured bank deposits from riskier trading business.
Delaware is home to some major financial companies and they have lobbied heavily against a non-binding resolution in the Delaware General Assembly supporting passage in Washington.
The Wilmington News Journal reports that both Senators Tom Carper and Chris Coons issued statements saying they believe the Wall Street reform legislation during the Obama administration is sufficient.
Even Governor Jack Markell opposes returning to Glass-Steagal.
But former Delaware Senate and aide to Vice President Joe Biden when he was in the upper chamber says he believes that a return to Glass-Steagall would prevent future bailouts and discourage risky financial practices.