Post by robeiae on Apr 15, 2017 9:34:48 GMT -5
www.rollcall.com/news/policy/senators-see-trump-support-giving-glass-steagall-bill-chance
I think the prevailing consensus on this--with regard to Trump--was that it was mostly just grandstanding. But maybe there's some hope?
Personally, I don't think the repeal of Glass-Steagall can be cited as the primary cause of the crisis, but it sure as hell didn't help. And Mnuchin is right, I think, insofar as a new version is needed. Can't just return to the old one.
A bipartisan group of senators that claims it has the support of President Donald Trump is backing legislation to revive the Glass-Steagall Act, a piece of 1930s legislation that prohibited commercial banks from engaging in investment banking activities.
The law was repealed in 1999, and some blame that repeal for the financial crisis that erupted in 2008 and 2009...
The Republicans adopted a platform plank at their convention in Cleveland last year that backed reinstating the law. The move was a surprise at a time when calls to restore Glass-Steagall were most often associated with the Democratic presidential campaign of Bernie Sanders, the Wall Street-castigating senator from Vermont...
Mnuchin, at his confirmation hearing to serve as Trump’s Treasury secretary this year, said the new administration would “look at Glass-Steagall and, what I refer to as the 21st-century Glass-Steagall” and determine if it is an “appropriate” part of “regulatory reform.”
Mnuchin said he didn’t support going back to Glass-Steagall as it was written in 1933, indicating it would need to be modified. He said he was concerned that restoring the Depression-era law without any adjustments “would have very big implications to the liquidity in the capital markets and banks being able to perform necessary lending.”
The law was repealed in 1999, and some blame that repeal for the financial crisis that erupted in 2008 and 2009...
The Republicans adopted a platform plank at their convention in Cleveland last year that backed reinstating the law. The move was a surprise at a time when calls to restore Glass-Steagall were most often associated with the Democratic presidential campaign of Bernie Sanders, the Wall Street-castigating senator from Vermont...
Mnuchin, at his confirmation hearing to serve as Trump’s Treasury secretary this year, said the new administration would “look at Glass-Steagall and, what I refer to as the 21st-century Glass-Steagall” and determine if it is an “appropriate” part of “regulatory reform.”
Mnuchin said he didn’t support going back to Glass-Steagall as it was written in 1933, indicating it would need to be modified. He said he was concerned that restoring the Depression-era law without any adjustments “would have very big implications to the liquidity in the capital markets and banks being able to perform necessary lending.”
Personally, I don't think the repeal of Glass-Steagall can be cited as the primary cause of the crisis, but it sure as hell didn't help. And Mnuchin is right, I think, insofar as a new version is needed. Can't just return to the old one.