Read

Search form

Elizabeth Warren Challenges Obama to Break up Too-Big-to-Fail Banks

Elizabeth Warren Challenges Obama to Break up Too-Big-to-Fail Banks
Thu, 11/14/2013 - by Dan Roberts
This article originally appeared on The Guardian

Senator Elizabeth Warren cemented her growing reputation as a darling of the political left on Tuesday with a wide-ranging speech challenging the Obama administration to take on Wall Street and break up its biggest banks.

Amid renewed speculation that she might challenge Hillary Clinton for the 2016 Democratic nomination, Warren appeared at a congressional event to attack regulators for failing to tackle the problem of financial institutions that are "too big to fail".

"We have got to get back to running this country for American families, not for its largest financial institutions," said Warren, who said the issue was an indictment of how little had changed since the 2008 banking crash.

The four biggest Wall Street banks are 30% larger than before the financial crisis, she said, while the five biggest institutions hold more than half the bank assets in the country.

Warren claimed this amounted to an $83bn-a-year taxpayer subsidy for some Wall Street institutions, because they were so large that they could safely rely on a government bailout in the event of a future crisis, and were therefore able to take bigger risks than rivals. She also cited research suggesting the crash had cost up to $14tn, or $120,000 for each American household.

The first-term senator from Massachusetts, who led the congressional taskforce overseeing the bank bailout, has repeatedly denied she has presidential ambitions, but growing talk of her potential candidacy has ensured that even is she doesn't run, she will act as a counter-weight to Wall Street financial backing for Clinton.

In her speech to the Roosevelt Institute and Americans for Financial Reform, Warren did not mention wider political ambitions but focused on proposed legislation launched over the summer with Republican John McCain to break up large banks and build on the 2010 Dodd-Frank reforms.

"Where are we in making sure behemoth institutions on Wall Street can't bring down the economy again? And make wild gambles that suck up all the profits in the good times? And stick the taxpayer with the bill when it goes wrong?" she demanded.

"Three years since Dodd-Frank was passed, the biggest banks are bigger than ever, the risks to the system have grown and the market distortions continue."

She said current regulators do not give "much reason for confidence" and added: "It is time to act: the last thing we should do is wait for another crisis."

Warren's remarks came as the White House confirmed that a relatively unknown Treasury official Timothy Massad would replace former Goldman Sachs banker Gary Gensler as chair of Wall Street derivatives regulator, the Commodities and Futures Trading Commission.

Announcing the appointment, President Obama defended what he called "historic Wall Streets reforms" that had already "put in place smarter, tougher common sense rules of the road."

 

"The markets have hit record highs and there is no doubt our financial system is more stable," said Obama.

"Tim's a guy that doesn't seek the spotlight," he added.

Originally published by The Guardian

Add new comment

Sign Up

Article Tabs

climate chaos, carbon emissions, climate movement, Break Free from Fossil Fuels, worldwide climate protests, disrupting dirty power, Climate Mobilization, 350.org, keep it in the ground, renewable energy transition

Starting next week, a global wave of mass actions will target the world’s most dangerous fossil fuel projects.

protest movements, social mobilizations, movement of the squares, Occupy Wall Street, Podemos Party, Jeremy Corbyn, Bernie Sanders, protest demands, horizontal democracy, Arab Spring, Nuit Debout

The movements of the squares were a watershed moment that profoundly changed grassroots and institutional politics – they have enthused in equal measure as they have disappointed, both under-delivering and over-delivering on their promises.

The Bay Area currency operates a commercial barter system – where businesses with unused inventory or excess capacity "deposit" their excess into an exchange, and “withdraw” other businesses’ excess goods and services instead of money.

climate crisis, climate information, Climate Feedback, accurate climate coverage

Climate Feedback brings together a global network of scientists who use a new web-annotation platform to provide feedback on climate change reporting.

Black Lives Matter, ACLU of Oregon, state surveillance, surveillance programs

Monitoring the social media use of BLM activists is an example of "how the level of trust between law enforcement and communities of color has been so damaged," the civil rights group says.

migrant crisis, East African migrants, migrant smugglers, organ trafficking

A week ago, on April 17, 400 East Africans drowned in the Mediterranean Sea after their boat capsized on the way to Italy – and when the numbers get this big, we forget that they are individual lives being lost, like this, every day.

Posted 6 days 2 hours ago
Panama Papers, tax avoidance, tax shelters, corporate tax evasion, Oxfam

The names on the list of "Broken At the Top" are like a who’s who of big business – and some of the headline figures are simply staggering.

Posted 3 days 19 hours ago
British academies, privatized education, lower teaching standards, low teacher pay, National Union of Teachers, Anti-Academies Alliance

“It is a complete bonfire of pay and conditions," said David Gilchrist of the Anti-Academies Alliance, who claims the government has "no evidence to back up the claim that academies improve educational standards – in fact the opposite is true."

Posted 4 days 20 hours ago

In recent weeks, thousands of people marched and were arrested on the steps of the Capitol demanding that the people’s voice be heard: that we the people, not money, be the driving force of our government.

Posted 6 days 2 hours ago

The Bay Area currency operates a commercial barter system – where businesses with unused inventory or excess capacity "deposit" their excess into an exchange, and “withdraw” other businesses’ excess goods and services instead of money.

Posted 2 days 20 hours ago
Panama Papers, tax avoidance, tax shelters, corporate tax evasion, Oxfam

The names on the list of "Broken At the Top" are like a who’s who of big business – and some of the headline figures are simply staggering.

climate crisis, climate information, Climate Feedback, accurate climate coverage

Climate Feedback brings together a global network of scientists who use a new web-annotation platform to provide feedback on climate change reporting.

British academies, privatized education, lower teaching standards, low teacher pay, National Union of Teachers, Anti-Academies Alliance

“It is a complete bonfire of pay and conditions," said David Gilchrist of the Anti-Academies Alliance, who claims the government has "no evidence to back up the claim that academies improve educational standards – in fact the opposite is true."

protest movements, social mobilizations, movement of the squares, Occupy Wall Street, Podemos Party, Jeremy Corbyn, Bernie Sanders, protest demands, horizontal democracy, Arab Spring, Nuit Debout

The movements of the squares were a watershed moment that profoundly changed grassroots and institutional politics – they have enthused in equal measure as they have disappointed, both under-delivering and over-delivering on their promises.

With more than 1,300 people arrested on the steps of the Capitol earlier this month, the Democracy Spring campaign pulled off one of the largest acts of civil disobedience this century.