The resolution urges the United States Congress to reinstate the Glass-Steagall Act, which was originally enacted in 1933 to prevent speculative activities that contributed to the banking system's collapse during the Great Depression. The Act established a separation between commercial and investment banking, effectively creating a firewall to protect the financial system. However, after its repeal in 1999, commercial banks merged with investment firms and other financial entities, leading to irresponsible financial practices that played a significant role in the housing market collapse and the subsequent recession in 2008.

In response to the financial crisis, Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act, aimed at addressing the causes of the recession. Nonetheless, the Dodd-Frank Act has been criticized for failing to adequately separate commercial and investment banking. The resolution emphasizes that reinstating the Glass-Steagall Act is essential for strengthening the financial system and preventing the speculative activities that led to the economic downturn. The Senate of New Jersey plans to transmit copies of this resolution to key congressional leaders to advocate for this legislative change.