Hillary: "Reinstating Glass-Steagall may very well help, but it's not enough." So why oppose it???

[reformist2]

There's an illogic to her position on Wall Street reform, to the extent one believes she's even serious about it.

Here's the illogic: If Glass-Steagall could "very well help" make for more sane & more responsible financial institutions, as Hillary admitted in the debate, then why can't reinstating Glass-Steagall be part of her bigger plan that covers everything??? Instead she has a plan to "do more", but Glass-Steagall can't be part of that plan to do more???

It makes no sense. It's interesting that her Wall Street donors won't let her lie about this, but are making her toe the line on this one... it must be very important indeed to block Glass Steagall!

[Bread and Circus]

1. You are trying to make too much sense... that's not how it works...

In Hillaryland. You gotta just drink the koolaid, close your eyes, and believe.

[roguevalley]

34. she opposes it because she was told to. Also, her $12 stance opposed to

$15 once again shows who she will serve. And it ain't you and me.

[truedelphi]

2. This is Big Lie Speak - and all the candidates that the Mainstream Media will support

Always end up speaking it.

[arcane1]

3. You're granting her an assumption of honesty she doesn't deserve.

She wants to pretend she has a plan that will do all that and more. But her bankrollers know damn well none of it will happen, and since Glass-Steagall is something specific, she has to come up with an illogical, poll-tested reason to oppose it.

[Juicy_Bellows]

7. I had a great reason ready to go but you said it better than I could. nt.

[ibegurpard]

4. Because her backers oppose it

And are trying their damnedest to convince people that it's not relevant.

[randys1]

5. AGain

[madokie]

6. Hillary will say and or do anything,

everything, whatever it takes to be President. The last person who should be President is that person who will do or say anything it takes to get there.

I'll vote for her if she is our nominee but only if. I remember when I used to think she was the person for the job but after the campaign of '08 and this one now I've totally changed my mind.

I want a person, like Bernie for instance, who has been fighting the same fights, fights I agree with btw, his whole adult life. He hasn't changed his position just for the sake that it might be popular or that it might bring in a few votes. Hillary has been all over the map on most issues, exactly why I can't trust her to do what is in my best interest.

[Vattel]

8. Very good question.

[JaneyVee]

9. Send her the legislation to sign.

[sadoldgirl]

10. Perhaps if push comes to shove

we could see another of her "evolutions", but I
doubt it on this issue.

By the way has she only said once that she is against
the TPP "as of today", or has she turned against it
definitely?

[sabrina 1]

11. They worked for decades to get rid of it. So naturally they will do everything they can

not to allow it back.

Not sure what she means by it 'isn't enough' since it worked pretty well for decades.

So where's her plan, the one that 'goes further'?

[oasis]

12. Hillary believes in her own, Paul Krugman approved plan. Case closed.

[NorthCarolina]

13. There'$ million$ of reason$ $he can't $upport it. eom

[Vincardog]

14. Hundred$ of million$

[NorthCarolina]

15. "It may help" but apparently it won't beat a good scolding! "Cut that out!!"

That's with a DOUBLE exclamation point.

[1StrongBlackMan]

16. In fairness,I doubt recall seeing where HRC OPPOSES G/S ...

all I've read is where she willing not advocate for its reinstatement because she does not believe it will be enough.

Am I incorrect?

[Eric J in MN]

39. Hillary Clinton doesn't say the words, "I oppose Glass-Steagall."

However, this is dialogue from the first debate:

ANDERSON COOPER: Glass-Steagall is the Depression-era banking law repealed in 1999 that prevented commercial banks from engaging in investment banking and insurance activities.

...Senator Sanders wants to break up the big Wall Street banks. You don't. You say charge the banks more, continue to monitor them. Why is your plan better?

HILLARY CLINTON: Well, my plan is more comprehensive. And frankly, it's tougher because of course we have to deal with the problem that the banks are still too big to fail. We can never let the American taxpayer and middle class families ever have to bail out the kind of speculative behavior that we saw.

But we also have to worry about some of the other players - AIG, a big insurance company; Lehman Brothers, an investment bank. There's this whole area called "shadow banking." That's where the experts tell me the next potential problem could come from.

So I'm with both Senator Sanders and Governor O'Malley in putting a lot of attention onto the banks. And the plan that I have put forward would actually empower regulators to break up big banks if we thought they posed a risk. But I want to make sure we're going to cover everybody, not what caused the problem last time, but what could cause it next time.

If Hillary Clinton was for Glass-Steagall, then she would have corrected Anderson Cooper.

[1StrongBlackMan]

49. I don't have a problem with what she said ...

because the key phrase is:

Well, my plan is more comprehensive. And frankly, it's tougher because of course we have to deal with the problem that the banks are still too big to fail.

In fact, I wouldn't have had a problem if she had actually said:

I OPPOSE the re-establishment of G/S because it doesn't fix the problem we are facing today ... Well, my plan is more comprehensive. And frankly, it's tougher because of course we have to deal with the problem that the banks are still too big to fail.

Which I happen to believe is the case.

[Eric J in MN]

53. I think that Bernie Sanders would also take a comprehensive approach.

In 2010, Bernie Sanders voted for the "Dodd–Frank Wall Street Reform and Consumer Protection Act," which became law.

Dodd-Frank tries to address the too-big-to-fail issue without separating savings banks from investment banks.

If Bernie Sanders were president, he would probably try to regulate Wall Street in multiple ways, and not just try to restore Glass-Steagall.

[1StrongBlackMan]

54. Oh, no doubt about it. n/t

[MaggieD]

17. Where does she say she opposes it?

What I have heard her say is it's not the solution. And she is correct. We are already seeing banks unwind their risk due to the regulations already passed. By DEMOCRATS.

You have THE most left wing economist imaginable in Paul Krugman saying she is correct, so why keep smearing her? Is it time to throw Krugman under the bus too?

[reformist2]

18. She could easily say, "I will ask Congress to reinstate Glass-Steagall, as just part of my plan."

It would be incredibly easy to say this. It takes five seconds. It fits on one line of a DU thread. And yet she has avoided saying this her whole campaign.

Instead, incredibly, she keeps saying we should forget about Glass-Steagall, which is probably the best piece of financial legislation of the 20th century.

[MaggieD]

19. Why since it isn't the solution?

Do you know what political capital is? Why should she waste it AND disrupt the markets for something that doesn't solve the problem?

You all accuse her (falsely) of changing her positions appear more liberal - so if that's true why wouldn't she on this unless she genuinely realized it provides nothing more than a false sense that the problem is solved?

[reformist2]

20. The Clintons have really lowered expectations about what presidents can do...

If you're a good leader, you can get through a whole raft of legislation.

Of course it helps if you have a Congress on your side. Interestingly, the Clinton/new Democrat era has seen the Democrats go from the majority in Congress to a pathetic minority. Again, more evidence of their poor leadership, poor ideas...

[MaggieD]

21. You can't really believe that

Do you really think Obama just wasn't trying hard enough?

[1StrongBlackMan]

50. Well, while Krugman IS of the Left ...

he is far from being the "most left wing economist imaginable."

G/S did a good job fixing the Depression Era banking problem; but, our banking system is 60 years beyond that ... we can't fix today's problems with yesterday's solutions.

[Recursion]

22. Because there's a finite amount you can accomplish and she doesn't want to waste time or capital

on it.

You pretty much get one "swing" per term, and using that on a symbolic gesture like Glass Steagall ("symbolic" is Elizabeth Warren's term, before anybody jumps down my throat) is probably not the best use of political energy.

[reformist2]

24. Again, lowered expectations. With Hillary, we're playing to break even - at best.

[Autumn]

23. Because it will help would be my guess?

[silenttigersong]

25. Avoiding

a topic that would likely bring neg press to her campaign ,putting herself in direct opposition of her most popular surrogate Bill Clinton.She is using the nostalgia of the Clinton years ,the economy ect.

[merrily]

26. In fairness, if you want to pass a bill that you think is better than Glass Steagall, you don't want

a bill you think is inferior taking up the Congressional oxygen on the subject.

[tammywammy]

28. Exactly. n/t

[Eric J in MN]

40. Bernie Sanders supports at least three banking-related bills which have yet to pass.

- His "Too Big to Fail, Too Big to Exist Act" for regulators to identify banks which are too-big-to-fail and break them up.

- His "College For All Act" which has a tax on stock transactions.

- Elizabeth Warren's "21st Century Glass-Steagall."

[merrily]

42. I'm not sure how that relates to my post. I was responding to why Hillary might object to such

a bill reinstating Glass Steagall.

[Eric J in MN]

44. I'm saying that politicians can support multiple banking bills at once. NT

NT

[merrily]

45. Ok, thanks.

[Hoyt]

27. Because Dodd Frank, Volcker Rule, Clinton's proposals will work.

[Eric J in MN]

29. The Volcker Rule was weakened by last year's Cromnibus.

http://www.ibtimes.com/elizabeth-warren-slams-citigroups-influence-cromnibus-bill-blasts-bid-water-down-dodd-1752604

[Hoyt]

30. Clinton recently released proposals that take care of issues. Krugman says it'll work.

I'm satisfied they have it under control.

[BlueStateLib]

31. Which version of Glass-Steagall should be reinstated. Should money market funds be eliminated and

should payment of interest on checking accounts be banned

1974, following the passage of ERISA laws
1977: The Federal Reserve Board staff argued bank holding companies should be able to establish securities affiliates
1982, there were a huge series of changes, including the rise of the “Nonbank Banks” These were non FDIC 1982, Comptroller C. Todd Conover of the OCC approved the mutual fund company Dreyfus and retailer Sears — both not banks — to establish “nonbank bank” subsidiariesnsured financial institutions that looked and felt like banks, but were technically deemed non banks.
1987, newly appointed Federal Reserve chair pressed the FOMC Board for formal approval of “Section 20 affiliate exemptions.”
1987 was the year the Federal Reserve Board approved their subsidiaries to underwrite securities, we can add the following: Bankers Trust, Citicorp, and J.P. Morgan & Co. 1987 was the year the Federal Reserve Board approved their subsidiaries to underwrite securities.
1987: Competitive Equality Banking Act (CEBA). In theory, this was a response to the Savings & Loan crisis, but it too carved out even more exemptions to Glass Steagall.
1995. That was when Representative James A. Leach (R-IA) became chair of the House Banking Committee. One of his first acts was to introduce a Greenspan supported bill to repeal key provisions of Glass-Steagall (notably, Sections 20 and 32).

The final straw for Glass Steagall came on April 6, 1998: That was when Travelers and Citicorp announced their merger.

The then existing rules allowed Citigroup to own the Travelers insurance underwriting business for two years before either divestment or FRB approval. Alternatively, the Bank Holding Company Act could be amended or overturned to “permit affiliations between banks and underwriters of property, casualty, and life insurance.” (Citigroup’s Salomon Smith Barney was already kosher under the affiliate exemption rules).

The Gramm-Leach-Bliley Financial Modernization Act of 1999 was signed into law on November 12, 1999.

Senator Warren has said that one of the reasons she’s been pushing reinstating Glass-Steagall — even if it wouldn’t have prevented the financial crisis — is that it is an easy issue for the public to understand and “you can build public attention behind.”

She added that she considers Glass-Steagall more of a symbol of what needs to happen to regulations than the specifics related to the act itself.

[Eric J in MN]

36. Here is the text of Elizabeth Warren's bill

21st Century Glass-Steagall Act of 2015

https://www.govtrack.us/congress/bills/114/s1709/text

[Doctor_J]

32. during the healthcare debate the dinos told us to not let the perfect be the enemy of the good

They have changed their tune right on cue

[Eric J in MN]

37. Good point. NT

NT

[AgingAmerican]

33. Glass Steagall takes the taxpayers off the hook

It makes the bankers absorb the losses from their gambling, not the depositors and the FDIC.

The net effect is, the banks don't gamble their own money and the economy stabilizes. It worked for 50 years until Reagan declawed it.

[tk2kewl]

35. They don't want to gamble with their own money; the want to gamble with ours

[Fearless]

38. WALL-STREET-BRIBES

Say it with me people.

[lovemydog]

41. I've been wondering the same.

I'd rather hear her say 'Yes, we should reinstate Glass-Steagall, and I'm on record as proposing a lot more than that too.'

[akbacchus_BC]

43. What is Glass-Steagall? Is it something only pertinent to the US?

[Eric J in MN]

46. It's a law signed by FDR

...which said that savings banks, investment banks, and insurance companies need to be separate organizations.

President Bill Clinton signed its repeal.

[akbacchus_BC]

47. Thanks, was that good or bad on the part of President Clinton?

[Eric J in MN]

48. Bad. The merger of investment banks and savings banks

...into huge companies concentrates corporate power.

[cantbeserious]

51. HRC - The Flip Flopping - Has Begun Again

eom

[Kalidurga]

52. Because 9/11 and 60% of my donations come from women.

And rebuilding Wall Street and good for the economy, jobs. Jobs for women.

[Cheese Sandwich]

55. nice catch. That made no sense.

[Enthusiast]

56. Kicked and recommended! It does not compute!

Bring back Glass Steagall!