Bill Clinton defends repeal of Glass-Steagall

Former President Bill ClintonWilliam (Bill) Jefferson ClintonTrump, GOP regain edge in Kavanaugh battle Presidential approval: It's the economy; except when it's not Hypocrisy in Kavanaugh case enough to set off alarms in DC MORE has defended his decision to repeal Glass-Steagall, the Depression-era banking regulation that splits large financial institutions and is championed by liberals.

"Politicians — particularly now, in the aftermath of this crash — fear that anything they do will be held against them later if anything bad happens," Clinton told Inc. in an interview. "Look at all the grief I got for signing the bill that ended Glass-Steagall. There's not a single, solitary example that it had anything to do with the financial crash.”

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Democratic presidential candidates Sen. Bernie SandersBernard (Bernie) SandersThe Memo: Tide turns on Kavanaugh Election Countdown: Trump confident about midterms in Hill.TV interview | Kavanaugh controversy tests candidates | Sanders, Warren ponder if both can run | Super PACs spending big | Two states open general election voting Friday | Latest Senate polls READ: President Trump’s exclusive interview with Hill.TV MORE (I-Vt.) and former Maryland Gov. Martin O'Malley have backed reinstating the policy, which would require big banks to divide their commercial and investment practices.

Democratic presidential front-runner Hillary ClintonHillary Diane Rodham ClintonHillicon Valley: Trump's exclusive interview with Hill.TV | Trump, intel officials clash over Russia docs | EU investigating Amazon | Military gets new cyber authority | Flynn sentencing sparks new questions about Mueller probe READ: President Trump’s exclusive interview with Hill.TV Keeping up with Michael Avenatti MORE declined to take a position on the policy while campaigning in South Carolina last month.

"I think this is a much more complicated issue than to just point at any one piece of legislation and say, if we just pass that, everything would be fine," she said when asked about Glass-Steagall. "It's a more complicated assessment that just any one piece of legislation might suggest.”

Most economists at the Federal Reserve agree that former President Clinton's repeal of the policy in 1999 didn't contribute to the crash.

Still, Glass-Steagall has become a political wedge issue for Democrats in recent months, especially since Sens. Elizabeth WarrenElizabeth Ann WarrenElection Countdown: Trump confident about midterms in Hill.TV interview | Kavanaugh controversy tests candidates | Sanders, Warren ponder if both can run | Super PACs spending big | Two states open general election voting Friday | Latest Senate polls On The Money: Midterms to shake up House finance panel | Chamber chief says US not in trade war | Mulvaney moving CFPB unit out of DC | Conservatives frustrated over big spending bills Warren suggests Mulvaney broke law by speaking to GOP donors MORE (D-Mass.) and John McCainJohn Sidney McCainTrump administration weakens methane pollution standards for drilling on public lands Another recession could hit US in 2019, says credit union association chief R-E-S-P-E-C-T: One legacy of Franklin and McCain is up to us MORE (R-Ariz.) reintroduced it in the upper chamber.

Bill Clinton told Inc. that he could support tweaking the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act — particularly on its impacts for community banks, which have lobbied for years that the regulations that are applied to big banks should not be applied to them.

"There should be a serious look at the impact of Dodd-Frank on legitimate community banks," Clinton said. "I think we ought to look at the way the Canadians regulated their banks. The Canadians had no financial crisis, you know. They always had unified banking — investment and commercial banking under one roof. But they had different rules for them."

Former President Clinton also called for the Small Business Administration to "become more aggressive" in its financing.