BOSTON (AP) -- Congressman John Tierney is co-sponsoring legislation in the U.S. House that he said will help protect retirees, families and consumers from financial institutions that engage in risky investments.
The Massachusetts Democrat is teaming up with North Carolina Republican Walter Jones to introduce a modern version of the 1933 Glass-Steagall Act, approved after the stock market crash of 1929. Many of its core provisions were repealed in 1999.
The new bill would separate traditional banks that have savings and checking accounts and are insured by the Federal Deposit Insurance Corporation from riskier financial institutions that offer services such as investment banking, hedge funds and private equity activities.
Tierney said the lack of those regulations helped fuel the nation's most recent financial crisis.
Massachusetts Democrat Elizabeth Warren and Arizona Republican John McCain sponsored a similar bill in the U.S. Senate.