Senators propose reinstatement of Glass-Steagall Act

Sens. John McCain, R-Ariz., and Maria Cantwell, D-Wash., proposed reinstating the Depression-era act that forced banks to split investment- and commercial-banking operations. "Under our proposal, 'too big to fail' banks would be forced to return to the business of conventional banking, leaving the task of risk-taking or management to others," McCain said. John Douglas, former general counsel of the Federal Deposit Insurance Corp., said "trying to split them up is crazy."