Wall Street Riles Clinton Camp
Bernie Sander's Plan to Tame Wall Street Riles Clinton Camp
http://www.huffingtonpost.com/mary-bottari/bernie-sanders-plan-to-ta_b_8925580.html
"Greed is not good," Sanders said, countering the famed Wall Street move character Gordon Gekko played by Michael Douglas in the 1987 film Wall Street. "In fact, the greed of Wall Street and corporate America is destroying the very fabric of our nation."
Before the (Sanders) plan was even released, the Clinton campaign was worried. Clinton's reform proposal, released online in October, had many positive elements including a limited tax on high speed traders, a risk fee on the biggest banks and greater transparency in the derivatives markets, but it did not go much further than the reforms contained in the 2010 Dodd-Frank bill. It said nothing about restoring Glass-Steagall and did not call for the break up of the nation's dangerous mega banks, whose very size and complexity could bring down the U.S. economy.
This puts Clinton out-of-step with respected reform advocates like Americans for Financial Reform. So before Sanders even rolled out his plan in New York on Tuesday, former CFTC Chair and Clinton advisor Gary Gensler issued a statement slamming it and urging Sanders to "go beyond his existing plans" to break up too-big-to-fail banks and endorse a "risk-based approach that also deals with non-bank financial institutions."
Clinton objects to the restoration of the Glass-Steagall Act on the grounds that the 1935 legislation doesn't address the modern "shadow banking system," and players like Lehman and AIG. (For a great primer on what shadow banking means, see this piece by Vermont Law Professor Jennifer Taub.)
But this is nonsense, say experts.
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