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Tuesday, November 12, 2013

Elizabeth Warren Wants Congress To Dismantle Banks "Too Big To Fail"


Sen. Elizabeth Warren has been in the 2016 presidential spotlight recently, but on Tuesday she was focused on the issue that helped get her to the Senate in 2012 – Wall Street reform.The Massachusetts Democrat spoke about the merits of stricter financial regulation in remarks on Capitol Hill to a pair of liberal-leaning groups: Americans for Financial Reform and the Roosevelt Institute. Five years after the financial crisis, there remain banks that are “too big to fail,” Warren warned. She called for sharper regulation of banking institutions and, more specifically, a revised version of the Glass-Steagall Act, the Depression-era law which restricted the role of certain financial institutions.“The last thing we should do is wait for more crises” before doing something to prevent them, the senator said in her prepared remarks.

Warren, who helped create the Consumer Financial Protection Bureau, praised the Dodd-Frank financial reform law, but argued that it doesn’t go far enough.

The new Glass-Steagall Act, Warren said, would re-institute many of the old protections of its predecessor - protections the senator credited with helping to ensure decades of financial stability before it was dismantled in the 1990s.

The new law “would reduce failures of the big banks by making banking boring, protecting deposits and providing stability to the system even in bad times,” Warren said.

“It would reduce ‘too big’ by dismantling the behemoths, so that big banks would still be big – but not too big to fail or, for that matter, too big to manage, too big to regulate, too big for trial, or too big for jail.”

Source:  CNN

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