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 Sanders would re-establish the law, initially repealed during the Clinton administration.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 Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Who bears the cost?

Who bears the cost?

This small window of low inflation should compel a rethink of how the authorities and employers understand the average household’s

Editorial

Internet restrictions
Updated 23 Dec, 2024

Internet restrictions

Notion that Pakistan enjoys unprecedented freedom of expression difficult to reconcile with the reality of restrictions.
Bangladesh reset
23 Dec, 2024

Bangladesh reset

THE vibes were positive during Prime Minister Shehbaz Sharif’s recent meeting with Bangladesh interim leader Dr...
Leaving home
23 Dec, 2024

Leaving home

FROM asylum seekers to economic migrants, the continuing exodus from Pakistan shows mass disillusionment with the...
Military convictions
Updated 22 Dec, 2024

Military convictions

Pakistan’s democracy, still finding its feet, cannot afford such compromises on core democratic values.
Need for talks
22 Dec, 2024

Need for talks

FOR a long time now, the country has been in the grip of relentless political uncertainty, featuring the...
Vulnerable vaccinators
22 Dec, 2024

Vulnerable vaccinators

THE campaign to eradicate polio from Pakistan cannot succeed unless the safety of vaccinators and security personnel...