Trump team muddies deregulation message with Glass-Steagall chatter
by Joseph Lawler
As President Trump promises a major rollback of the post-financial-crisis rules on banks, his administration is muddying his deregulation message by pushing a new Glass-Steagall, a recession-era policy more commonly associated with Sens. Bernie Sanders and Elizabeth Warren than with Republicans. … In fact, Glass-Steagall legislation isn’t likely, even though a bipartisan group of lawmakers, including Sens. Elizabeth Warren, D-Mass., and John McCain, R-Ariz., cited Cohn in introducing a bill that would create an even more aggressive form of the law in April. But there simply aren’t enough Republican lawmakers who would sign on. Administrative action would be more likely. And the administration could do “a huge amount” with the powers it has now to impose a form of Glass-Steagall, according to Karen Petrou, managing partner for Federal Financial Analytics, which advises banks on regulatory affairs.