Glass-Steagall on Their Brain
Nov. 8, 2016 (EIRNS)—On the eve of the U.S. elections, International Business Times UK threatened that Donald Trump’s backing for Glass-Steagall is among the
"reasons" that a Trump victory "could cost the American economy $2 trillion. U.S. banks would find themselves under pressure after a Trump victory, as Republicans have pledged to reinstate the Glass-Steagall Act.... Ironically, this position is close to the views of Democratic radical Bernie Sanders,"
the IBK harrumphed.
For its part, the American Banker worries that even if their Hillary Clinton wins the election, Glass-Steagall might be on the agenda if the Democrats gain a Senate majority.
"If Democrats claim a Senate majority in the next Congress, [Elizabeth] Warren will enjoy a powerful position on the Senate Banking Committee, which will then likely be chaired by Senator Sherrod Brown of Ohio. Brown would likely use his leadership of the Banking Committee to keep a Clinton administration in check on international trade issues. Warren, on the other hand, would likely take the lead on pushing Clinton to the left on banking issues,"
AB wrote yesterday. The big difference cited between Clinton and Warren vis-a-vis the banks, is "Warren’s support for Glass-Steagall," which Clinton
"has stopped short of endorsing... Bankers may soon find themselves backing Clinton as a check on Senator Warren’s attempts to continue to push for more regulation of the industry."