President Trump: To Jumpstart the U.S. Economy, Please Honor Your Promise to Break Up the Big Banks!
WashingtonsBlog.com
November 18, 2016
Donald Trump and the Republican Platform Called for Restoring Glass-Steagall and Breaking Up the Too Big to Fails
The Republican platform under Donald Trump called for restoring the Glass-Steagall separation between traditional depository banking and speculative investment banking. Trump himself has called for it.
This would lead to the break up of the giant banks.
The New York Times explains:
The Republican Party platform calls for breaking up the large banks by restoring the New Deal-era Glass-Steagall Act, which required a separation of investment from commercial banking.
The People Want Them Broken Up
As Minneapolis Fed President Kaskari points out, a lot of the populist anger which got Donald Trump elected is based on allowing the too big to fail banks to survive:
Mr. Kashkari said he traced some of the nation’s current political anger and polarization to how the government responded to the financial crisis — which allowed large banks to survive while thousands of Americans struggled to keep their homes and find new jobs.
“The bailouts violated a core belief that has been handed down from generation to generation in our society that if you take a risk you bear the rewards and consequences of that risk,” he said. “We had to tear that up during the crisis because the biggest banks were going to fail and bring down the U.S. economy. And when you violate the core beliefs of society it does lead to anger and a feeling that this wasn’t fair.”
The Rest…HERE
