Trump Wants To Dismantle Big Banks And Rigged Economic Systems

Trump

Question: is breaking down banks so that no bank is too big to fail a Republican or a liberal idea? Both Bernie Sanders and Donald Trump now are in favor of such a move. Most recently, Trump endorsed exactly such a move, calling for a return to the Glass-Steagall Act.

The Act was initially put into place during the Great Depression to separate bank operations to serve either Wall Street or Main Street, restricting them from serving both. President Bill Clinton repealed the Glass-Steagall Act in 1999 if you were wondering how closely it relates to big banks and the Great Recession. Following the Glass-Steagall, Act banks were able to offer every area of financial services, including personal banking and investing through brokerages, credit cards, insurance, and even retirement accounts.

Trump goes on to stipulate that he wants to repeal Dodd-Frank citing it as allowing bad banking following the financial crisis. Trump wants to dump the rigged economic, political, banking systems.Trump-Wants-To-Dismantle-Big-Banks-And-Rigged-Economic-Systems

Meanwhile, the big banks are in opposition to the return of Glass-Steagall because it would mean that they would have to be dismantled. They would be forced to return to pre-2000 size and functions. Yet, the banks would agree with Trump on the other point. Even big banks want to dump Dodd-Frank laws. Its increased banks’ costs significantly.

That has striking consequences for small community banks and lenders who are not the big fish. It has proven to be too much for every sized bank.

In general, the Republicans and Wall Street generally are agreeable to one another with Republican candidates receiving a good deal of campaign contributions from them. This year is a standout because hardly any bankers or Wall Street traders are giving Trump financial backing. Word has it that few if any bankers will be at the Republican convention this year in Cleveland.

Bernie Sanders was a proponent of reinstating the Glass-Steagall Act. It was the main part of his run for president. He accused Hillary Clinton of being opposed to this because she collects such hefty fees to speak at Wall Street investment houses and banks. Of course, it is interesting to note that she is a Democrat and therefore not popular on Wall Street.

This is a smart move on Trump’s part, because while Clinton is still a bit tangled in the bad impression the FBI investigation made on her, Sanders did have staunch supporters.

It is clear that the anti-Wall Street push is palpable and very real in the 2016 election. The Glass-Steagall is part of everyone but Hillary Clinton’s platform, but then again she’s taking money from the big banks and raised eyebrows among the FBI. Yet some on Wall Street are confident they will not see the return on the Glass-Steagall Act because they are confident it just will not get through Congress.

Leave a Reply

Your email address will not be published. Required fields are marked *