Trump says he’s considering moves to break up Wall Street banks

President Donald Trump said he is actively considering breaking up giant Wall Street banks, giving a push to efforts to revive a Depression-era law separating consumer lending and investment banking.

“I’m looking at that right now,” Trump said Monday in an interview with Bloomberg News in the Oval Office. “There’s some people that want to go back to the old system, right? So we’re going to look at that.”

President Donald Trump
U.S. President Donald Trump listens during an interview in the Oval Office of the White House in Washington, D.C., U.S., on Monday, May 1, 2017. Trump said he would meet with North Korean leader Kim Jong Un amid heightened tensions over his country's nuclear weapons program if the circumstances were right. Photographer: Andrew Harrer/Bloomberg

During the presidential campaign, Trump called for a “21st century” version of the 1933 Glass-Steagall law that required the separation of consumer lending and investment banking. The 2016 Republican party platform also backed restoring the legal barrier, which was repealed in 1999 under a financial deregulation signed by then-President Bill Clinton.

A handful of lawmakers blame the repeal for contributing to the 2008 financial crisis, an argument that Wall Street flatly rejects.

Trump officials, including Treasury Secretary Steven Mnuchin and National Economic Council Director Gary Cohn, have offered support for bringing back some version of Glass-Steagall, though they’ve offered scant details on what an updated approach might look like. Both Mnuchin and Cohn are former bankers who worked for Goldman Sachs Group Inc.

Bloomberg News
TBTF SIFIs Financial regulations Donald Trump Steven Mnuchin
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