Sen. Elizabeth Warren Starts Campaign To Force Banks To Be Boring

WASHINGTON — Sen. Elizabeth Warren has launched an advertising campaign to make banking institutions boring again as she pushes legislation to enact stricter rules forcing deposit-taking finance institutions from the investment business. The Massachusetts Democrat desires to reinstate the Depression-era Glass-Steagall rules, which separated what she called uninteresting cost savings and checking out accounts that are backed by the Federal government Deposit Insurance Corp. And after joining three other senators Thursday in introducing a bill to do that, Warren visited the Twitterverse to rally support. She urged her fans retweet the message Twitter, “Banks should be boring.” She emailed her political backers asking them to aid her 21st Century Glass-Steagall Act, which she introduced along with Sens.

John McCain (R-Ariz.), Maria Cantwell (D-Wash.) and Angus King (I-Maine). Quiz: Do U.S. companies pay inadequate in taxes? On Fri morning hours she appeared on CNBC and Bloomberg TV to make her case And. The day “By the end of, there is no single magic pill to avoid ‘too big to fail,’ ” Warren said. “But the central premise behind a 21st hundred years Glass-Steagall is to state, ‘If you want to get out and take dangers there, go and do it,” she continues. Liberal groupings cheered the new legislation.

But Warren and other followers of reinstating the Glass-Steagall prohibitions, which were repealed in 1999, face a hard fight in Congress as the largest banks have pressed back highly against attempts to force them to downsize. Industry officials and their supporters have said Glass-Steagall wouldn’t normally have avoided the financial crisis. They observed that the financial institutions that helped or failed to result in the turmoil — including Bear Stearns & Co., Lehman Bros., American International Group, Countrywide Financial Corp. IndyMac Bank or investment company — weren’t engaged in crossover deposit-taking and investment-banking activity.

“We think that the Congress modernized the regulatory platform through Dodd-Frank which addressed the problems we within the turmoil,” said Scott Talbott, senior vice president for public plan at the Financial Services Roundtable, which signifies the largest companies. “Time for Glass-Steagall would take the industry backward,” Talbott said. Warren decided that Glass-Steagall would not have avoided the financial crisis, but she said reinstating it could help force the largest banking institutions to downsize, reducing the risk of future bailouts.

“What Glass-Steagall can do is freeze even more of the chance out of the system. It can help bring down the size of the largest banking institutions,” she said on CNBC. Asked about the long odds of passing the legislation, Warren said she noticed the same thing about the Consumer Financial Protection Bureau. Warren experienced the original idea for the company and helped obtain it contained in the 2010-Dodd-Frank financial reform law despite strong opposition in the financial industry.

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I assume chair Yellen is referring to U.S. Clearly, central bank or investment company Credit and government borrowings have expanded spectacularly around the world. I suspect as well there has been a significant expansion in speculative leveraging and securities Credit at home and abroad. Georgia Senator David Purdue: “Thank you for being here and for your service. I’ve two quick questions just.