The Trump administration is trying to trick people into thinking it's cracking down on Wall Street

Treasury Secretary Steven Mnuchin sat in front of the Senate Banking Committee on Thursday and attempted to lay out how the Trump administration's position on various economic policies, including the regulation of large banks.

Mnuchin continually said that the administration supports a "21st Century Glass-Steagall," referring to the Depression-era bill that required commercial and investment banks to remain separate.

Except for the law's defining aspect.

"We do think there are potential things we could look at around regulation, but we do not support separation of banks and investment banks," Mnuchin said.

A flabbergasted Senator Elizabeth Warren pointed out that Glass-Steagall is best known for the separation of the two types of banks.

"There are aspects of Glass-Steagall that you support, but not breaking up the banks and separating commercial banking from investment banking?" Warren asked. "What do you think Glass-Steagall was if that's not right at the heart of it?"What Warren is getting at is this: The Trump administration is doing its best to make everyone think it is bringing back the Wall Street regulation — to deliver on a Republican campaign promise — when all it's really doing is using the old law's name. For background, Glass-Steagall was repealed in 1999, clearing the way for commercial-investment mergers on Wall...
33 Published By - Business Insider - 2017.05.18. 21:50
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