US presidential hopeful vows to break up big banks

Published January 6, 2016
Bernie Sanders speaks during a campaign stop on Monday in Manchester, New Hampshire.—AP
Bernie Sanders speaks during a campaign stop on Monday in Manchester, New Hampshire.—AP

WASHINGTON: Democratic presidential candidate Bernie Sanders will pledge to break up the country’s largest financial institutions within the first year of his administration should he win the White House next November. He plans to make that pledge in a speech in New York on Tuesday afternoon.

In a rare policy address detailing his financial regulation plans, Sanders will vow to create a “too-big-to-fail” list of companies within the first 100 days of his administration whose failure would pose a grave risk to the US economy without a taxpayer bailout, according to aides familiar with his plans. He would force the banks and insurance companies to reorganise within a year.

“Greed is not good,” Sanders plans to say, according to excerpts of his remarks. “And, here is a New Year’s Resolution that we will keep: If you do not end your greed, we will end it for you.”

Sanders has made regulating Wall Street a focus of his insurgent primary bid, questioning whether front-runner Hillary Clinton would crack down on what he sees as financial sector excesses. Clinton and her husband, former President Bill Clinton, have made tens of millions in speaking fees from addresses to Wall Street banks, insurance companies and other financial firms.

She also opposes reinstating the Depression-era Glass-Steagall Act, which effectively limited the size of financial companies by prohibiting commercial banks from engaging in investment banking activities. Sanders would re-establish the law, initially repealed during the Clinton administration.

Clinton’s campaign tried to pre-empt Sanders speech on Monday afternoon, putting out a statement from a top aide arguing that Clinton’s financial regulation proposals would do more to crack down on industry abuses.

“In his speech tomorrow, Sen. Sanders should go beyond his existing plans for reforming Wall Street and endorse Hillary Clinton’s tough, comprehensive proposals to rein in risky behaviour within the shadow banking sector,” said the statement from Gary Gensler, a top campaign finance official and former chair of the Commodity Futures Trading Commission.

Published in Dawn, January 6th, 2016

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Editorial

Balochistan outreach
11 Apr, 2025

Balochistan outreach

THE problems of Balochistan are “political and must be resolved through political means”. This view, espoused by...
PSL season
11 Apr, 2025

PSL season

THE build-up to the 10th season of the Pakistan Super League, cricket’s most lucrative product in the country, has...
Student woes
11 Apr, 2025

Student woes

BRIGHT young Pakistanis face an uncertain future in the US. The Trump administration, not content with merely...
Mineral wealth
Updated 10 Apr, 2025

Mineral wealth

The Baloch unrest is partly the result of the belief that the province’s resources are being used for the rest of the country rather than for Balochistan’s economic development.
Senate shortfalls
10 Apr, 2025

Senate shortfalls

THE latest Citizens’ Report by Pildat on the performance of the Senate of Pakistan is a sobering account of...
Crypto coup
10 Apr, 2025

Crypto coup

IT is quite the coup. One of the most recognisable names in the global cryptocurrency market has been roped in by ...