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White House: ‘We’re Not Returning to Glass-Steagall’

Taking a quick cue from Massachusetts, the Obama administration is putting on its populist hat this week to take on the nation’s largest financial institutions

Jul 31, 2020
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Taking a quick cue from Massachusetts, the Obama administration is putting on its populist hat this week to take on the nation’s largest financial institutions in the name of consumer protection. The president’s proposal — which would prevent large Wall Street firms that trade outside of their clients’ interests from owning commercial banks — is largely a part of the Democrats’ strategy to shift the party’s legislative focus (and the nation’s attention) from health-care reform, which isn’t polling well, to more populist themes.
Here’s a warning, however, from a senior administration official talking to reporters this morning: “We’re not returning to Glass-Steagall.”
What the White House doeswant, though, is to create a new Consumer Financial Protection Agencyto regulate mortgages, credit cards, payday loans and other complex financial products often confusing to consumers. That push is causing some trouble in the Senate, where Senate Banking Committee Chairman Chris Dodd (D-Conn.) is already leaning toward scrappingthat idea for the sake of getting a bipartisan bill. Earlier this week, Obama called Doddto the White House to press him on the issue, but there’s no indication yet what the Connecticut Democrat — who announced this month that he won’t be seeking reelection this year — intends to do.
Indeed, Dodd’s statement this morning reacting to Obama’s new finance reforms says, well, pretty much nothing.
“I look forward to studying the President’s proposal and will give it careful consideration as the Committee moves forward on financial reform,” Dodd said.
Not really going out on any limbs there.
Paolo Reyna

Paolo Reyna

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Paolo Reyna is a writer and storyteller with a wide range of interests. He graduated from New York University with a Bachelor of Arts in Journalism and Media Studies. Paolo enjoys writing about celebrity culture, gaming, visual arts, and events. He has a keen eye for trends in popular culture and an enthusiasm for exploring new ideas. Paolo's writing aims to inform and entertain while providing fresh perspectives on the topics that interest him most. In his free time, he loves to travel, watch films, read books, and socialize with friends.
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