Elizabeth Warren Slams ‘Bizarre’ Glass-Steagall Statements From Trump’s Treasury Secretary
WASHINGTON ― Do words and history mean anything?
That question was the subject of debate on Thursday when Treasury Secretary Steven Mnuchin testified before the Senate Banking Committee.
The Trump administration showed its now-routine sense for the absurd when Mnuchin said it supports a 21st-century Glass-Steagall Act ― referring to an updated version of the the Depression-era regulation that separated commercial and investment banks ― but also opposes any bill separating commercial and investment banks.
Sen. Elizabeth Warren (D-Mass.), the lead sponsor of the bipartisan 21st Century Glass-Steagall Act of 2017, grilled Mnuchin on his statements.
“The Republican platform did have Glass-Steagall,” Mnuchin said in response to a question from Warren asking if he was reversing the administration’s previous position. “We, during the campaign … had the opportunity to work with on this specifically, came out and said we do support a 21st-century Glass-Steagall. Which is … there are aspects of it, OK, that we think may make sense. But we never said before that we supported a full separation of banks and investment banks.”
Warren, incredulous, responded, “There are aspects of Glass-Steagall that you support, but not breaking up the banks and separating commercial banking from investment banking? What do you think Glass-Steagall was if that’s not right at the heart of it?”
Even though the 2016 Republican Party platform very specifically stated, “We support reinstating the Glass-Steagall Act of 1933 which prohibits commercial banks from engaging in high-risk investment.”
Mnuchin maintained on Thursday that when he says he supports a 21st-century Glass-Steagall that does not mean he supports the Glass-Steagall’s separation of commercial and investment banking, adding that the […]