Hillary Clinton opposes breaking up the megabanks, opposes reinstating Glass-Steagall [View all]

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Last edited Mon Jul 13, 2015, 08:40 PM - Edit history (7)

Financial adviser: Clinton won't push Glass-Steagall bank bill

By Peter Schroeder - 07/13/15 01:47 PM EDT

Hours after Hillary Clinton vowed to crack down on Wall Street, an adviser said she has no plans to push a bank break-up bill beloved by the left.

Alan Blinder, a former Federal Reserve official now advising the Clinton campaign, told Reuters Monday that she has no plans to push for the return of a banking law that separates commercial and investment banks.

Liberals frequently argue that the Glass-Steagall Act, whose repeal was signed into law by President Bill Clinton, would have helped minimize the damage of the last financial crisis. But Blinder, who worked in the Clinton White House as well, said that is not in the cards for Hillary Clinton.

'You’re not going to see Glass-Steagall,' he said, adding that he had spoken directly to Clinton about the issue.

...

She said Washington must 'go beyond' the Dodd-Frank financial reform law, calling banks 'still too complex and too risky.' She vowed to prosecute banks and bankers that break the law, as well as appoint tough regulators that would crack down on “too big to fail” financial institutions.

On matters like banker prosecutions, Clinton sounded similar to Warren, the left’s most prominent voice on financial matters. But when it comes to Glass-Steagall, it appears the two differ."

Full article: http://thehill.com/policy/finance/247700-adviser-clinton-wont-push-glass-steagall-bank-bill

For the record, both Sen. Bernie Sanders and Gov. Martin O'Malley support breaking up the "too big to fail" banks into smaller units. Sanders and O'Malley are both huge proponents of Sen. Elizabeth Warren's efforts to reinstate Glass-Steagall to separate commercial banking from risky investment banking.