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Financiers Warned Not To Be Too Glib; Trump Might Go for Glass-Steagall

Dec. 4, 2016 (EIRNS)—Brookings Institution’s Aaron Klein, who served as Deputy Assistant Secretary for Economic Policy in the Obama administration’s first term, helping write the Dodd-Frank Act, told Standard and Poor’s’ Financial Institutions Conference in New York City on Dec. 1, that people assuming that Donald Trump "is going to mean less regulation than Obama full stop, is way too simplistic an analysis," Reuters reported.

Klein reiterated in New York his earlier warning after the election, that Trump advocated for the return of Glass-Steagall during the election, as well as talking about rolling back Dodd-Frank’s regulations (Bloomberg, Nov. 15: "The Future of Financial Reform under President Trump").

"Markets have assumed in the short term with the rally that they have got the deregulatory Trump, but maybe there is this other one. He has shown an ability to move unconventionally between the two. We don’t know which of the two we’ve got," Klein told the S&P conference, Reuters reported. And don’t forget that Trump is proposing a "giant retrenchment" away from globalization.

"If the world order is going to break down in terms of trade, the European Union ... why would anyone think banking alone is going to remain an island, moving towards global coordination?"

Klein said.

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