The 1933 Glass-Steagall Act was a Depression-era law which walled-off the activities of Main Street banks from Wall Street investment firms, separating commercial banking from investment banking’s high-risk financial speculation. In 1999 however, the Clinton administration repealed this Act and allowed banks to begin participating in the same high-risk investments that Glass-Steagall was designed to prohibit. Many claim this wall needs to be rebuilt, saying Clinton’s repeal played a major role in our 2008 financial meltdown and the ensuing world-wide recession. In response to this catastrophe, we passed the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act which prohibited banks from using taxpayer-insured depositor funds for high-risk derivative transactions known as credit-default swaps. But Dodd-Frank has subsequently been weakened. Wall Street critics warn the stage is now set for taxpayers to be on the hook for more bank bailouts should these risky investments threaten to blow up our financial system as they did in 2008.

Pending Legislation: S.2920 - Stronger Enforcement of Civil Penalties Act of 2025
Sponsor: Sen. Jack Reed (RI)
Status: Senate Committee on Banking, Housing, and Urban Affairs
Chair: Sen. Tim Scott (SC)

• I oppose reforming current Securities and Exchange Commission enforcement policy and wish to donate resources to the campaign committee of Leader John Thune (SD).
• I support increasing monetary penalties for violations of federal securities laws, making them more substantial to deter misconduct in financial markets by:
  
  1.) Strengthening deterrence against securities fraud and violations by raising financial penalties.
  
  2.) Amending the Securities Act of 1933 to increase specific penalty thresholds, for example, raising limits in administrative actions from $7,500 to $10,000 (or $75,000 to $100,000) for certain violations.
  
  3.) Raising "third-tier" (most severe) penalties to $1 million per offense for individuals and $10 million for entities.
  
  And wish to donate resources to the campaign committee of Sen. Tim Scott (SC) and/or to an advocate group currently working with this issue.