President Trump’s suggestion to re-instate
Glass-Steagall has been dismissed by many market participants,
and appears to contradict his executive order’s
mission to rollback financial regulation.
The Glass-Steagall Act was introduced by Franklin D
Roosevelt in 1933 and then repealed by Bill Clinton in 1999
with the establishment of the Gramm-Leach-Blilearley Act.
Glass-Steagall created a barrier between commercial and
investment banks and prevented big banks from gambling with
Trump’s Treasury Secretary, Steven Mnuchin,
said during his confirmation hearing that he backed a
'21st century version’ of
Glass-Steagall. And earlier this month, Thomas Hoenig,
vice-chairman of the Federal Deposit Insurance Corporation said
that universal banks should set up standalone holding companies
if they wanted to carry out non-traditional bank
Is he bringing it back?However,
Trump’s executive order clearly laid out a pledge
to rollback regulation wherever possible, and his actions so
far as President seem...