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

Pakistan wetlands, wetlands destruction, climate impacts on Pakistan, biodiversity loss, species loss, wastewater

Rapid population growth, wastewater pollution, an increase in dams – and sweeping changes wrought by climate change – are imperiling Pakistan's treasured wetlands and river systems.

EpiPen, Heather Bresch, Joe Manchin, Mylan Pharmaceutical

Sen. Amy Klobuchar has demanded hearings on the EpiPen’s 450 percent price increase in just seven years.

marijuana, public banking, Drug Enforcement Agency, Federal Deposit Insurance Corporation

Because marijuana continues to be classified as a Schedule 1 drug, private banks are effectively prohibited from fully participating in this market.

income inequality, the 99%, Occupy Wall Street

It may not improve much next year, if House Republicans have their way.

act out, occupy, art, creative activism, private prisons, DOJ, CCA, GEO, ICE, federal bureau of prisons, 2016 olympic games, olympics in rio, olympic devastation, favela, brazilian government, dilma rousseff, michel temer, income inequality, solutionary

This week: The DOJ announced that they're breaking up with private prisons.

corporate takeover, fascism, dictators, Adolf Hitler, Benito Mussolini, Francisco Franco, corporate fascism, anti-immigrant policies, racism, xenophobia

A new brand of fascism and far-right ideology is on the march, with demagogues moving towards power from Austria to the U.S., France to Finland, Greece to Germany.

Posted 5 days 23 hours ago
Hillary Clinton, corporate presidency, Trans-Pacific Partnership, TPP, oil and gas industry, fracking, Ken Salazar, John Podesta, Bernie Sanders, Tim Kaine, Democratic National Committee, DNC

Rhetoric aside, Clinton is showing her full solidarity with Wall Street – most recently with the announcement that former Interior Secretary and oil and gas industry insider Ken Salazar will chair her transition team.

Posted 4 days 19 hours ago
EpiPen, Heather Bresch, Joe Manchin, Mylan Pharmaceutical

Sen. Amy Klobuchar has demanded hearings on the EpiPen’s 450 percent price increase in just seven years.

Posted 3 days 11 min ago

A hacking group calling itself the “ShadowBrokers” is auctioning off authentic NSA software, part of a powerful constellation of tools used to covertly infect computers worldwide.

Posted 6 days 2 min ago
Black Lives Matter, George Zimmerman, Trayvon Martin, Philando Castile, Alicia Garza,

Again and again, the movement has challenged the abandonment of Black communities underlying a wave of police violence.

Posted 4 days 19 hours ago

A hacking group calling itself the “ShadowBrokers” is auctioning off authentic NSA software, part of a powerful constellation of tools used to covertly infect computers worldwide.

Pakistan wetlands, wetlands destruction, climate impacts on Pakistan, biodiversity loss, species loss, wastewater

Rapid population growth, wastewater pollution, an increase in dams – and sweeping changes wrought by climate change – are imperiling Pakistan's treasured wetlands and river systems.

marijuana, public banking, Drug Enforcement Agency, Federal Deposit Insurance Corporation

Because marijuana continues to be classified as a Schedule 1 drug, private banks are effectively prohibited from fully participating in this market.

EpiPen, Heather Bresch, Joe Manchin, Mylan Pharmaceutical

Sen. Amy Klobuchar has demanded hearings on the EpiPen’s 450 percent price increase in just seven years.

act out, occupy, art, creative activism, private prisons, DOJ, CCA, GEO, ICE, federal bureau of prisons, 2016 olympic games, olympics in rio, olympic devastation, favela, brazilian government, dilma rousseff, michel temer, income inequality, solutionary

This week: The DOJ announced that they're breaking up with private prisons.