20 July 2016

I Did Not Expect This

The Republicans have called for reinstating the Glass Steagall law separating commercial and investment banking:
Both major political parties are now calling for an overhaul of the financial industry through the return of Glass-Steagall, a Depression-era banking law.

Paul Manafort, presumptive Republican presidential nominee Donald Trump's campaign manager, told reporters gathered in Cleveland Monday that the GOP platform would include language advocating for a return of that law, which was repealed under President Bill Clinton.

“We also call for a reintroduction of Glass-Steagall, which created barriers between what big banks can do,” he said.

Including that language in the GOP platform comes shortly after Democrats agreed to similar language in their own, calling for an “updated and modernized version” of the law.

A party platform is not binding but is thought to reflect the values of the party. And the GOP platform has not yet been officially released, although the convention is expected to approve it later Monday.

Nonetheless, the embrace of Glass-Steagall by both parties is a telling indication of how unpopular Wall Street remains with the public, years after the financial crisis.
The devil, of course, is in the details, and on both sides of the aisle, any "updated and modernized" version of the law will almost certainly be riddled with loopholes and hence meaningless, but it is surprising that this ended up a part of the Republican platform.


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