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commercial banks from engaging in most investment
banking activities and kept investment banks out of
commercial banking, but those barriers were removed in
1999 with passage of the Gramm-Leach-Bliley Act.

Some scholars and politicians have suggested the
Banks ask Congress for national deconstruction of Glass-Steagall contributed to risky
data protection standards behavior that led to the Great Recession. Warren has crafted
a bipartisan plan to reinstate Glass-Steagall restrictions.
The American Bankers Association wants Congress to enact
national data protection standards for all companies that
handle sensitive consumer financial data. "Since the core provisions of the Glass-Steagall Act were
repealed in 1999, a culture of excessive risk-taking has
taken root in the banking world, placing the financial
"It's time to get serious about building a security infrastructure
that brings banks, payment networks and retailers together security of millions of hardworking American taxpayers
to safeguard sensitive financial data," James Ballentine, at risk," said Sen. John McCain, R-Ariz. "Even with the
ABA Executive Vice President of Congressional Relations and thousands of pages of misguided and burdensome
Political Affairs, wrote in a May 8, 2017, letter to members of regulations imposed by Dodd-Frank in the wake of the
the House and Senate. "It's time to pass a strong, consistent 2008 financial crisis, there are indications that this culture
national standard for fighting data breaches and give of risky behavior continues today. That's why I believe it
consumers the protection they need." is critical for Congress to reinstate the protections that
separated main street banks and investment banks."
In the United States today, no comprehensive federal law
addresses the collection, use and protection of consumers' McCain; Warren; Sen. Maria Cantwell, D-Wash.; and Sen.
personal data. Instead, data security is covered by a patchwork Angus King, Jr., I-Maine, have signed on to a package of
of federal and state laws and regulations, as well as guidelines reforms known as the 21st Century Glass-Steagall Act
developed by regulators and industry groups (for example, the (S. 881). "Reinstating Glass-Steagall has broad bipartisan
Payment Card Industry Data Security Standard). support, and it's time to get it done," said Sen. Warren in a
statement about the bill.
In his letter, Ballentine said banks are being held to higher
data security standards than other businesses. "The financial Even President Trump suggested he would favor a Glass-
services sector is highly motivated to protect sensitive Steagall-like wall between traditional and investment
consumer data and spends literally hundreds of millions of banking activities. "I'm looking at that right now," he told
dollars a year protecting it," he wrote. "Sadly for American Bloomberg News in late April.
consumers, others are not required to protect consumer
data under federal law." Some have even lobbied against Meanwhile, Sen. Mike Crapo, R-Idaho, Chairman
past legislative efforts to create a national data protection of the Senate Committee on Banking, Housing and
standard, he added. Urban Affairs, said he's working with Democrats on his
committee to craft a comprehensive package of changes
to financial regulations. Crapo, however, has conceded
The ABA letter pointed to an impact study by the Identity
Theft Resource Center, a nonprofit organization that helps that he would be hard pressed to get Democrats on board
victims of identity theft, to illustrate how superior banks with any legislation that scales back the CFPB's authority
are at protecting consumer data. According to that study, to issue and enforce pro-consumer regulations.
just 0.2 percent of data breaches in which customer records
were exposed so far this year occurred in the financial sector, The CFPB has been a partisan battlefront since its inception.
while 81.3 percent involved breaches at retailers and other Republicans routinely blast the bureau for regulatory
businesses. overreach. Several have introduced measures to gut
CFPB actions such as a pending body of rules governing
prepaid cards. Two Texas Republicans, Sen. Ted Cruz and
The ITRC has been collecting information on breaches
involving Social Security numbers and credit and debit card Rep. John Ratcliffe, have introduced legislation (S. 370 and
numbers since 2010. In 2016, Social Security numbers were H.R. 1031, respectively) that would disband the bureau.
exposed in 52 percent of breaches, an 8.2 percent increase Regarding H.R. 1031, Ratcliffe stated he was "optimistic
over 2015; just 13.1 percent of 2016 breaches exposed credit at our renewed chances of advancing this effort with a
and debit card numbers, down 7.4 percent from 2015, the ITRC willing partner in the White House."
reported.
The Financial CHOICE Act would radically alter the CFPB,
changing its name, replacing its single director with a five-
member commission subject to congressional oversight
and appropriations, and repeal its authority to ban bank
products or services it deems "abusive."

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