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Trump’s Lead Economic Advisor says ‘No’ to Glass-Steagall

Nov. 3, 2017 (EIRNS)—Speaking to Politico at an event yesterday in Washington, D.C., Gary Cohn, the former Goldman Sachs executive now serving as director of President Trump’s National Economic Council, threw cold water on the idea that the Administration is considering reinstating the 1933 Glass-Steagall banking law which separated speculation from legitimate banking activity. Asked whether "you’re considering doing Glass-Steagall," Cohn said, "Aside from some more small changes in regulation, we’re not considering anything more." Cohn has previously floated the idea that he (and his former employer Goldman Sachs) would welcome the FDR bill, as it would have more immediate negative consequences for megabanks JPMorganChase, Bank of America, and Citigroup.

Legislation for reinstituting the banking separation law, which a theatened new financial crash makes extremely urgent, remains pending in both the House and the Senate. In the House, Rep. Marcy Kaptur’s H.R. 790 has a total of 58 sponsors; Sen. Elizabeth Warren’s S. 881 has nine sponsors, including herself.