Sanders calls Clinton 'naive' on Wall Street

Sanders calls Clinton 'naive' on Wall Street

Sen. Bernie SandersBernie SandersDemanding transparency and fairness from Trump tax plan Overnight Energy: Trump orders review of national monuments, claiming ‘egregious abuse’ Dem rep: Trump's tax plan as believable as 'magic, unicorns or Batman' MORE (I-Vt.) knocked Hillary ClintonHillary Rodham ClintonObama's speech proves hypocrisy of Democrat's anti-Wall Street rhetoric Lawmakers targeted as district politics shift Want a tremendous deal on infrastructure spending? Suspend Davis-Bacon MORE as "naive" on Wall Street during the first Democratic presidential debate on Tuesday in Las Vegas.

"Going to Wall Street and saying 'please stop' is very naive," Sanders told Clinton during a heated exchange about their regulatory policies, in particular the Glass-Steagall Act.

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The former secretary of State has sought to differentiate herself from two of her closest Democratic challengers: Sanders and former Maryland Gov. Martin O'Malley, who have called for reviving Glass-Steagall. The Great Depression-era law, which President Bill ClintonBill ClintonPatagonia threatens to sue Trump over national monuments order Robert Siegel leaving NPR's 'All Things Considered' Press: Hillary's doomed bid MORE repealed in 1999, required financial institutions to separate their commercial and investment banking operations.

Clinton, in contrast, argued that Glass-Steagall is the wrong policy prescription and wouldn't have prevented the 2008 economic collapse.

"If only you look at the big banks, you may be missing the forest for the trees. We've got to look at all the other financial institutions," Clinton said during the debate.

Instead of Glass-Steagall, Clinton would raise the fees for financial institutions that engage in high-risk transactions and banking.

The Democratic contenders each tried to make the case that they would be the toughest on Wall Street.

"You are not for Glass-Steagall. You are not for putting a firewall between speculative, risky shadow banking behavior. I am," O'Malley told Clinton during the debate.