In this report, we analyze Secretary Mnuchin’s appearance today before the Senate Banking Committee at which the Secretary was pressed on Glass-Steagall, GSE reform, and regulatory relief for both small and regional banks.  Mr. Mnuchin’s testimony again reinforces our prior analysis (see Client Report FHC24) that outlines what a “21st Century Glass-Steagall” could look like under the Trump Administration, a view also highlighted in today’s Wall Street Journal.  Mr. Mnuchin today emphasized that Glass-Steagall is about preventing conflicts of interests – not separating commercial and investment banking as the Warren-McCain bill would do (see FSM Report FHC21).  A forthcoming FedFin report will go into depth on this critical distinction and how it would affect industry configuration.

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