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Stories of Interest
- Address at ICI's 2017 Securities Law Developments Conference - SEC Commissioner Stein
- New York Pension Fund Seeks More Pay Disclosure from Wells Fargo
- Wells Fargo Sanctions Are on Ice Under Trump Official
- Josh Brown: Here's How to Buy Bitcoin, But Realize It Could Be One Giant Bubble
- Trump's New Tax Plan Could Cost Citigroup $20 Billion
- Morgan Stanley Fires Former Congressman Harold Ford Jr.
- Al Franken Will Resign Over Sexual Misconduct Allegations - His Full Resignation Speech
- Ex-NFL Player Gets 40 Years for Running $10Mn Fraud
- Bitcoin Blows Past $15K, Adding $2K in Under 12 Hours
- Financial Adviser Settles Charges for Defrauding Private Equity Fund Investors
- New Cross Market Equity Supervision Report Cards - FINRA Phone-In Workshop, WebEx Presentation
- Mueller Just Crossed Trump's Red Line, With Deutsche Bank Subpoena
- Wildfire Rages Near Los Angeles
- Former Company Insider Has $4.1Mn Payday as a Whistleblower
- Audit Firm, Anton & Chia, Conducted Fraudulent Audits of Penny Stock Companies - SEC
- Mueller Subpoenas Deutsche Bank Records on Trump and Family
- Bitcoin Nearly Halfway to $400Bn Value Predicted by Winklevoss Twins 4 Years Ago
- Fidelity Clients Suffer Second Website Glitch in Week
- CBOE Beats CME to Bitcoin Futures Launch with December 10 Start
- McKinsey Senior Exec Thomas Barkin Named New Head of Federal Reserve Bank of Richmond
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NEWSLETTERS & ALERTS
Conflicted: In Support of Restoring Glass-Steagall
[Photo: by Andrew Harrer / Bloomberg]
Until it was repealed in 1999, the Glass–Steagall Act provided for the separation of commercial and investment banking. It prevented securities firms and investment banks from taking deposits, while preventing commercial Federal Reserve member banks from:
- dealing in non-governmental securities for customers
- investing in non-investment grade securities for themselves
- underwriting or distributing non-governmental securities
- affiliating (or sharing employees) with companies involved in such activities
During the presidential campaigns, Donald Trump pledged to restore the Glass-Steagall Act, and last month WH spokesman Sean Spicer said that Trump remains committed to that pledge.
Yesterday, at a private meeting arranged by Senate Banking Committee Chairman Mike Crapo, Gary Cohn, who heads the National Economic Council, expressed support for a policy that would separate the consumer-lending businesses of large Wall Street banks from their investment banking. The remarks surprised some of the attendees, who would have thought that this former Wall Street executive would be more inclined to try and influence the Trump administration to take a pass on such radical legislation.
Nevertheless, the remarks led a White House official to say later that Cohn was simply reiterating the Trump administration's view that the banking system should be simplified with a focus on helping business grow and create jobs.
The Trump administration gets curiouser and curiouser.