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Trump pushes for return of Glass-Steagall


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Trump pushes for return of Glass-Steagall

The GOPplatform, released late July 18, includes a return of the Glass-Steagall Act,as proposed by presumptive Republican presidential nominee Donald Trump.

"Wesupport reinstating the Glass-Steagall Act of 1933 which prohibits commercialbanks from engaging in high-risk investment," the Republican Platform 2016read.

Through theyears, severallawmakers from bothsides of the fence have called for a to Glass-Steagall, which amongother things, imposed the strict separation of commercial banking andinvestment banking operations.

Lately,former Democratic presidential hopeful Bernie Sanders, I-Vt., and , D-Mass., haveadvocated for a reinstatement of Glass-Steagall.

Inaddition, Compass Point analyst Isaac Boltansky called the move "part of abroader political gambit intended to position the Trump campaign to the left of[Hillary] Clinton on financial services issues in order to promote a narrativethat she is cozy with Wall Street and possibly even entice some Sanders supporters,"in a recent research report on the issue. The analyst also stated that it alsoputs Trump in a unique position to challenge Clinton "from her ideologicalleft."

However,Boltansky also said that he feels that a reinstatement of Glass-Steagall is"unlikely," and that the "big bank bashing from both partieswill eventually lead to targeted policies aimed at lessening the relativeregulatory burden for regional and community banks."