Sen. Elizabeth Warren (D-Mass.) urged progressives Tuesday to defend Wall Street reform laws and pushed again for re-instating legislation that would break up big banks.
 
Warren called on Democrats to rally behind her proposal to re-instate Glass-Steagall, which President Bill Clinton repealed in 1999, during a speech in Washington to mark the fifth anniversary of the 2010 Dodd-Frank Wall Street Reform law. She portrayed the repeal of Glass-Steagall as one of the causes of the 2008 economic collapse, something that Federal Reserve officials and Clinton refute.
 
{mosads}”That high wall between high-risk trading and boring banking was punched full of holes until in the late 1990s, it was knocked down when Glass-Steagall was eventually repealed,” she said. “And not long after that, the worst crash since the 1930s hit the American economy.”
 
Warren’s comments come a day after an advisor to Democratic presidential frontrunner Hillary Clinton said Clinton has no plans to push for the bank break-up bill.
 
“You’re not going to see Glass-Steagall,” Alan Blinder said, adding that he had spoken directly to Clinton about the issue.
 
Two of Clinton’s challengers, Sen. Bernie Sanders (I-Vt.) and former Maryland Gov. Martin O’Malley, have called for re-instating it.
 
“The idea is pretty simple behind this one: if banks want to engage in high-risk trading — they can go for it, but they can’t get access to ensured deposits and put the taxpayers on the hook for that reason,” Warren said.
 
Warren played a crucial role in crafting portions of Dodd-Frank before she was elected into the Senate.
 
Republicans have argued that too many of the Dodd-Frank regulations are stifling economic growth. They say many of the medium- and small-sized financial institutions didn’t play a role in the 2008 collapse and are having to adhere to regulations written for big banks.
 
Warren criticized a proposal from Senate Banking Committee Chairman Richard Shelby (R-Ala.), who wants to weaken the regulations for medium-sized banking institutions to stimulate economic growth.
 
“Financial reform isn’t finished,” Warren said. “Right now, Republicans want to roll back Dodd-Frank, returning us to the days of bubbles and buy-outs. We are here to fight back.”
Tags Elizabeth Warren Glass-Steagall Act

The Hill has removed its comment section, as there are many other forums for readers to participate in the conversation. We invite you to join the discussion on Facebook and Twitter.

See all Hill.TV See all Video

Most Popular

Load more

Video

See all Video