Sens. Elizabeth Warren, D-Mass., John McCain, R-Ariz., Maria Cantwell, D-Wash., and Angus Kin, I-Maine proposed a bill that would reinstate the Depression-era Glass-Steagall Act, and analysts believe the legislation will not pass Congress.
Many policymakers prefer implementing the 2010 Dodd-Frank Act over Warren's version of the Glass-Steagall Act. Treasury Secretary Jacob Lew was quoted saying that "activity in the financial world [has] gotten beyond it."
If the bill is passed, the senators say it would help prevent the possibility of a government bailout by making "too big to fail" financial institutions smaller and safer.
"But even though the bill has garnered media attention, its passage is a long shot. Many observers believe that when the writing of Dodd-Frank concluded in 2010, the moment passed to reinstate a firewall between an institution's traditional banking function and its riskier activities," writes American Banker's Victoria Finkle.
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