Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
Hillary Clinton Is Not Telling The Truth About Wall Street
Snip
These would be substantive changes. A lot of shadow banking takes place at firms with traditional banking charters, like JPMorgan Chase and Bank of America. Some of it takes place at specialized hedge funds, or at major investment banks like Goldman Sachs. Breaking them up would not eliminate the risk shadow banking poses to the economy, but it would limit it. Risky shadow banking activities cannot bring down institutions that are too-big-to-fail if there are no too-big-to-fail institutions.
Yet the Clinton campaign has repeatedly said Sanders is wholly ignoring shadow banking, accusing Sanders of taking a "hands-off" approach to it that would not apply to firms like Lehman Brothers and AIG. This barrage has come from Clinton's press aides, campaign CFO Gary Gensler, and Clinton surrogate Barney Frank.
In a bizarre appearance on Chris Hayes' MSNBC show, Frank claimed that splitting up Morgan Stanley or Bank of America "is not going to do anything, literally not anything to restrain shadow banking." He even said that since Lehman Brothers was "very small" when it failed, Sanders' break-up-the-banks plan would be unworkably broad and apply to too many firms.
It's hard to see these comments as anything but dishonest. Lehman Brothers was not "very small" when it failed. At $639 billion in assets, it was the single-biggest bankruptcy filing in American history. Only six U.S. banks are now larger than Lehman was, and the next-largest institutions are almost half Lehman's size. AIG -- then the world's largest insurer -- was even bigger.
Yet the Clinton campaign has repeatedly said Sanders is wholly ignoring shadow banking, accusing Sanders of taking a "hands-off" approach to it that would not apply to firms like Lehman Brothers and AIG. This barrage has come from Clinton's press aides, campaign CFO Gary Gensler, and Clinton surrogate Barney Frank.
In a bizarre appearance on Chris Hayes' MSNBC show, Frank claimed that splitting up Morgan Stanley or Bank of America "is not going to do anything, literally not anything to restrain shadow banking." He even said that since Lehman Brothers was "very small" when it failed, Sanders' break-up-the-banks plan would be unworkably broad and apply to too many firms.
It's hard to see these comments as anything but dishonest. Lehman Brothers was not "very small" when it failed. At $639 billion in assets, it was the single-biggest bankruptcy filing in American history. Only six U.S. banks are now larger than Lehman was, and the next-largest institutions are almost half Lehman's size. AIG -- then the world's largest insurer -- was even bigger.
Snip
http://www.huffingtonpost.com/entry/hillary-clinton-wall-street_568ed8d6e4b0cad15e6415cd?
