Senator Elizabeth Warren (D-Mass.) said a bipartisan group of U.S. lawmakers are introducing legislation aimed at separating commercial and investment banking, recreating a Depression-era firewall established by the Glass-Steagall Act but repealed in 1999, Bloomberg News reported yesterday. The legislation is also sponsored by Sens. John McCain (R-Ariz.), Maria Cantwell (D-Wash.) and Angus King (I-Maine). The bill aims to separate traditional banks that offer checking and savings accounts insured by the Federal Deposit Insurance Corp. from “riskier financial institutions” that work in investment banking, insurance, swaps dealing, hedge funds and private equity.
