Thursday, May 18, 2017

Senator Warren challenges Treasury Secretary over Glass-Steagall

Warren notes that Secretary Mnuchin, along with the (notmy)President, supported a 21st Century Glass-Steagall Act. The original act separated the type of banks that loaned money from those that did speculative investment. It's demise was a direct cause of the financial meltdown.  So Mnuchin replies that he never supported the original Act but does support this purportedly new one because it does not have that separation. Needless to say, Warren is aghast and calls him out repeatedly over this sorry excuse of a new Act that not only does nothing to prevent another financial crisis but to the contrary encourages yet another one. Apparently the new Act just uses the same name as the old one to give a false impression that it's doing something to solve the problem while doing the opposite.

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