Treasury Secretary Dashes Hopes For Glass-Steagall Revival

Xavier Trudeau
Mai 20, 2017

In March, White House spokesman Sean Spicer affirmed that the administration was committed to restoring Glass-Steagall. Mnuchin said it will be broader than simply undoing much of the Dodd-Frank law enacted under President Barack Obama.

But he agreed that it's "correct" to say that the administration's plan would cut the corporate tax rate, the pass-through tax rate, reduce the top marginal tax rate for individuals, and eliminate the alternative minimum tax as well as the estate tax. We said we were in favor of a 21st-century Glass-Steagall.

The questions focused on tax reform and revamping Dodd-Frank: two major GOP goals. He noted that the administration supports parts of Glass-Steagall, which Congress repealed in 1999.

Treasury Secretary Steven Mnuchin said Thursday the government still is considering issuing government bonds with maturities of 50 years or greater keep federal borrowing costs lower, despite a cool reception from Wall Street.

Joseph Otting, who formerly worked as a banking executive at OneWest bank, which Mnuchin once headed, is believed to be the favorite for the position. It was in the Republican party platform, Donald Trump said it specifically a few weeks before the election. Mnuchin said such a law would hurt companies and access to credit, sparring with Sen. Richard Shelby (R-Ala.) called him "a breath of fresh air", while Sen.

He also apologized for not knowing that Warren has since 2013 introduced a bill called the "21st Century Glass-Steagall Act".

MNUCHIN: There's many aspects of it, okay? Donnelly, up for reelection in 2018, said Indiana's manufacturing economy had been wrecked by cheap imports from China with artificially lowered prices.

"We are studying ultra long bonds which would be 50 year bonds or even longer", he told members of the Senate Banking Committee in a hearing. "Our initial report will contain recommendations to provide relief for community banks and make regulations more efficient, effective and appropriately tailored".

"I'm looking at that right now", Trump told Bloomberg News. Brown demanded. "People want to know about those entanglements". "We said we were in favor of a 21st Century Glass-Steagall - we couldn't be clearer". "That means there are aspects of it that we think may make sense but we never said before that we supported a full separation of banks and investment banking".

"I think all you're doing is just adding to the deficit, which is incredibly irresponsible to the children of this country", said Sen.

"This is like something straight out of George Orwell", Warren said about the apparent flip-flop.

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