Mnuchin: Administration Doesn't Support Reinstating Glass-Steagall Act

Cohn Mnuchin visit Capitol Hill to discuss tax reform

Elizabeth Warren for saying that he supported a "21st-century Glass-Steagall" Act, but opposed breaking up banks' commercial and investment banking functions.

Mnuchin, making his first appearance before the Senate Banking Committee since taking over as treasury secretary, said in a heated exchange with Sen.

Responding to criticism over the department's appointment of a banking-industry lawyer as acting comptroller of the currency, Mnuchin told members of the Senate Banking Committee that Trump's prospective nominee is going through what may be a lengthy vetting process.

But Mnuchin insisted Thursday that his call for a modernized version of that law does not include a strict firewall that would break up some of the biggest names on Wall Street. So, the Republican platform did have Glass-Steagall.

Mnuchin responded that the original concern leading to Glass-Steagall, enacted in 1933, was related to conflicts, not credit risks.

"The fundamental part of Glass-Steagall was separation [of commercial and investment banking functions], Mnuchin said".

The Trump administration has said they are receptive to a "modern" version of Glass-Steagall. But Mnuchin took a different position Thursday. All three have substantial footprints in commercial and investment banking, so their business models would be buffetted.

Mnuchin said during his confirmation hearing that he supported a "21st-century Glass-Steagall", and Trump's top economic adviser, Gary Cohn, reportedly made similar statements. "What do you think Glass-Steagall was if that's not right at the heart of it?"

Warren grilled Mnuchin on the Trump administration's stance on Glass-Steagall after the treasury secretary seemed to contradict himself.

"But we will put procedures in place, and I specifically said this, to make sure that people who should be paying higher taxes do not use pass throughs to arbitrage the system". "This is insane", Warren said to no one in particular at the end of her testy exchange with the Treasury secretary.

WARREN: We are in - we are in favor of a bill that is called breaking up the banks, only don't break up the banks.

Such a list is needed to reveal whether Trump's associates and investors have been in compliance with laws related to bank secrecy, sanctions, money laundering and other regulations, Brown said. "The integration of commercial banking and investment banks has gone on for a long period of time", he said, predicting there would be "enormous" economic impact, particularly on bank liquidity, "if we did go back to a full separation".

Related News:

  • No Wimbledon wildcard for Maria Sharapova

    No Wimbledon wildcard for Maria Sharapova

    She will then enter the qualifying stages at Wimbledon at Roehampton which will take place between June 26th and June 29th. In return for the LTA's generosity, Sharapova has committed to play at the tournament again next year.
    Johnny Depp Discloses the Strangest Place He's Ever Hooked Up

    Johnny Depp Discloses the Strangest Place He's Ever Hooked Up

    Months earlier, he labeled Trump a "brat" during a university Q&A session. 'But what he is, I believe, is a brat, ' he said. The subject of Depp's portrayal of Trump for amusing or Die's Donald Trump's The Art of the Deal: The Movie parody.
    IPL 2017 55th Match: Supergiants qualify for playoffs, Kings XI miss out

    IPL 2017 55th Match: Supergiants qualify for playoffs, Kings XI miss out

    Mumbai Indians (MI) and Rising Pune Supergiant ( RPS ) will face each other in the Qualifier 1 on May 16 at the Wankhede Stadium. MI consistency in the performance is indicated by the fact they finished at the top of the points table after the league stages.
  • Senators chase Fleury, rout Penguins 5-1 in Game 3

    Senators chase Fleury, rout Penguins 5-1 in Game 3

    Fleury allowed four goals on nine shots before getting the hook, but he is a big reason why the Penguins are where they are. There have been three goals scored by the Penguins in this series and unlike previous year , depth scoring is nonexistent.
    Duggar Sisters File Privacy Suit Against City, Magazine

    Duggar Sisters File Privacy Suit Against City, Magazine

    As a result, the Duggars' show, " 19 Kids and Counting ", was canceled, and Josh entered a rehab program. That was after an anonymous tipster reported the girls had been molested by their brother.

    Allardyce agrees with Mourinho that last league game should have been moved

    Souness is aware that United are forced to pay a premium for any player such is their stature as a club, but feels Pogba still has work to do to justify such a large outlay. 'Paul is fine, ' said Mourinho.
  • Crypto outbreaks linked to swimming have doubled since 2014

    Crypto outbreaks linked to swimming have doubled since 2014

    About 1 in 4 adults say they would swim if they had diarrhea, according to a survey by the Water Quality and Health Council. Laboratory manager Jaima Ballentine said her staff finds all sorts of bacteria, even fecal matter swimming in the water.
    The Coca-Cola Company Posted losses of -0.3% in the Last Trade

    The Coca-Cola Company Posted losses of -0.3% in the Last Trade

    Following the transaction, the insider now directly owns 149,185 shares in the company, valued at approximately $6,479,104.55. The Coca-Cola Company (KO ) is an interesting player in the Consumer Goods space, with a focus on Beverages - Soft Drinks.
    Citigroup Inc (NYSE:C) & Symantec Corporation (NASDAQ:SYMC) Stocks in the Spotlight

    Citigroup Inc (NYSE:C) & Symantec Corporation (NASDAQ:SYMC) Stocks in the Spotlight

    The institutional investor owned 1,900 shares of the CRM provider's stock after buying an additional 500 shares during the period. Following the completion of the transaction, the chairman now owns 34,195,300 shares in the company, valued at $2,804,014,600.
  • Pune: 21-year-old gets mom's womb in India's first uterus transplant

    Pune: 21-year-old gets mom's womb in India's first uterus transplant

    In what is the first transplant of its kind in India, a 43-year-old mother has donated her uterus to her 21-year-old daughter. The uterus will be removed so that the patient does not have to keep taking immunosuppressant drugs to keep rejection at bay.
    Nicky Hayden's Condition Remains Unchanged

    Nicky Hayden's Condition Remains Unchanged

    Nine-time world champion Rossi took time out from preparing for this weekend's French MotoGP at Le Mans to pay tribute to Hayden. Hayden, who had raced in the World Superbike Championship at Imola in Italy last Sunday, won the MotoGP championship in 2006.
    Walter Mazzarri speaks out following shock Watford sacking: I reached my target

    Walter Mazzarri speaks out following shock Watford sacking: I reached my target

    Six of the last seven watford bossess have been foreign, while the other, Billy McKinlay, is Scottish and only lasted two games in the dugout.


Most liked

Jeff Kaplan Promises More Overwatch Animated Shorts Are on the Way
Blizzard has a released a lengthy trailer teasing the event while also celebrating how far Overwatch has come in the past year. The event will commence on May 23, the day Overwatch launched previous year , and will last until June 12.

Celtics follow euphoria of winning lottery with dud on court
If not to have first choice of the best available player, then to make sure your pick has as much trade value as possible. The Celtics, of course, gave up their top guys in the trade , so they had to play the waiting game.

Colombian President: 'You Won't Need Walls' With Economic Development
Santos also brought up human trafficking and illegal mining, which he said are practiced by the same networks that traffic drugs. Trump took the opportunity to jump in after what he called Santos's "very long, very diplomatic answer". "They work.

Girls Have Reportedly Been Released By Boko Haram
Numerous kidnapped girls, most of whom were Christians, were forced to marry the Islamic extremists and became pregnant. Chibok school girls recently freed from Boko Haram captivity are seen in Abuja , Nigeria, Sunday, May 7, 2017.

Average US 30-year mortgage rate slips to 4.02 percent
At the current average 30-year fixed mortgage rate of 4.15 percent, the monthly payment for a $200,000 loan is $972.21. The benchmark 30 year fixed rate loan interest rates at BB&T Corp.

Reporter says he was roughed up by security guards at FCC
At least one comment included a death threat against Pai and his family, and there have been protests outside his house. A pair of Senate Democrats are separately pressing the FCC for answers about the treatment of CQ Roll Call's John M.

Chinese-Made Passenger Jet Takes Off For Its First Test Flight
The plane can come with 155-175 seats and has a standard flight length of 4,075 kilometers (2,530 miles). Single-aisle plane can carry up to 168 passengers and is meant to rival Airbus and Boeing aircraft.

China's Xi says willing to help end rift with South Korea
Chinese official media quoted Xi as saying China is committed to resolving any issues through dialogue and coordination . The South Korean leader had pledged to review the hasty deployment of THAAD at a golf course in central South Korea.

Sam Allardyce Expecting More From Wilfried Zaha
An Etihad source said: "Palace have been showing an interest in Bacary and Gael for a while, and look like they're ready to make a move".

Steinhaus to become Bundesliga┬┤s first female referee
Steinhaus coolly brushed him off, while German media heavily criticized the Spaniard, who now manages Manchester City. Steinhaus is one of four new referees in Germany's top flight next season announced by the German FA (DFB ) on Friday.

Trump son-in-law family apologizes for China name drop
Meyer noted that if investors put at least $500,000 into the Kushner-family backed project, they could qualify for an EB-5 visa. Kushner Companies apologizes if that mention of her brother was in any way interpreted as an attempt to lure investors.

Hungary PM slams EU sanctions threat
EURACTIV exclusively reported last month that EPP was maturing to the idea of using Article 7 in the case of Hungary. In addition, the Hungarian government called on to loosen its regulations against asylum-seekers and NGOs.

Nintendo Reveals New Characters, Game Modes and More
We'll be reporting on all the news from the press events that week, as well as bringing you previews from the show floor. ARMS is created by nearly the same team of people who developed the Mario Kart 8 Deluxe game for Nintendo Switch.

Pemberton Music Festival Goes Bankrupt; Fans May Not Get Refunds
Rumors had been increasing in recent days as fans noticed the Pemberton social media accounts seemed to have been deactivated. To make matters worse, fans who purchased their tickets in advance will not get any automatic refunds.

Union: Up to 40K walking off the job at AT&T this weekend
Workers will return to their jobs on Monday and the union is hoping to return to the bargaining table with the company. In a statement emailed to Consumerist, AT&T argued that this strike is "baffling" and in "no one's best interest".