What does a 21st-century Glass-Steagall look like?
By John Heltman
Despite a general lack of specificity about what exactly it would entail — or maybe because of it — the idea of a so-called 21st-century Glass-Steagall Act remains surprisingly durable. Both Treasury Secretary Steven Mnuchin and Sean Spicer, the White House’s chief spokesman, have said it remains on President Trump’s agenda, while Federal Deposit Insurance Corp. Vice Chairman Thomas Hoenig recently outlined an idea that might qualify as a modern version of the 1930s-era law. …Karen Shaw Petrou, managing partner at Federal Financial Analytics, said the concept of ring-fencing commercial and investment banking activities may seem at odds with the administration’s overarching deregulatory push, but Hoenig’s plan sounds in line with what the administration is seeking. “One of the reasons I think it has legs is that it has a very constructive potential solutions to it, in terms of trying to resolve the unfinished Dodd-Frank business,” Petrou said. “They have to come up with a plan, and this one could be it.”