WASHINGTON — Citing the $2 billion loss at JPMorgan Chase, Massachusetts Senate candidate Elizabeth Warren is calling for the enactment of a new version of the Glass-Steagall Act.
"A new Glass-Steagall would separate high-risk investment banks from more traditional banking," Warren wrote in a letter to supporters. "It would allow Wall Street to take risks, but not by dipping into the life savings and retirement accounts of regular people."
"And by making banks smaller, a new Glass-Steagall could also help put an end to banks that are 'too big to fail' — further avoiding costly taxpayer bailouts."
Warren, the architect of the Consumer Financial Protection Bureau, urged her supporters to sign a
Warren, a Democrat who was the architect of the Consumer Financial Protection Bureau, is locked in a tight race with Republican Sen. Scott Brown.
She is using the JPMorgan Chase episode to highlight her financial-policy experience.
"If I'm elected to the U.S. Senate from Massachusetts, I promise this difference from my Republican opponent Scott Brown: I will be a reliable and strong champion for commonsense Wall Street reform," she wrote in the letter to supporters.
Since the JPMorgan Chase news broke on Thursday, Warren has also