Stunned press coverage of President-Elect Donald Trump’s support for Glass-Steagall piles on:
* morningconsult.com ran a Nov. 9 article titled, “Where Trump Agrees and Disagrees with Republicans on the Economy.” It starts, “On trade and some banking regulations, however, Trump’s views will be a test for traditionally conservative members of Congress.
“In a speech on urban renewal, Trump called Dodd-Frank a ‘disaster’ but also doubled down on his support on Glass-Steagall, the mothballed law that limited the securities actions of commercial banks. Former President Bill Clinton signed into law the Gramm-Leach-Bliley Act, which repealed Glass-Steagall. The Republican platform this year endorsed the reinstatement of Glass-Steagall… House Financial Services Committee Chairman Jeb Hensarling (R-TX) met with Trump during the general election campaign but stayed mum on the party’s embrace of Glass-Steagall. Other Republicans acknowledged that Trump position runs counter to typical GOP views.
“‘Dodd-Frank has been a disaster, making it harder for small businesses to get the credit they need,’ Trump said in an Oct. 26 speech. “‘The policies of the Clintons brought us the financial recession — through lifting Glass-Steagall, pushing subprime lending, and blocking reforms to Fannie Mae and Freddie Mac. It’s time for a 21st Century Glass-Steagall and, as part of that, a priority on helping African American businesses get the credit they need.'”
* Bloomberg News, Financial Post features on Nov. 9, “‘A Monster in the White House’: Why Donald Trump is a wild card for wary Wall Street,” by Jesse Hamilton and Elizabeth Dexheimer. It reports that Trump said in August he’d issue a temporary moratorium on new regulations… He’s also said he’ll bring back the Glass-Steagall Act’s wall between commercial and investment banking… A series of bewildered questions follows, such as “Wall Street has spent billions complying with Dodd-Frank… having battled over virtually every inch of its terrain during the last six years. What does it mean when Trump says he wants to dump it? … Then continues, “One of the financial initiatives Trump has called for — reinstating the Glass-Steagall separation between bank lending and securities underwriting — would need congressional backing. But Wall Street has been befuddled by Trump’s bashing of rules, while pushing for a regulation that would completely change the banking industry. And bringing back Glass-Steagall hasn’t traditionally been a policy Republicans support.
“It’s time for a 21st Century Glass-Steagall,” Trump says on his website. That phrase, a ’21st Century Glass-Stagall Act,’ also happens to be the actual title of the bill pushed by one of his chief antagonists: [elizabeth] Warren, a Democratic Senator from Massachusetts.”
The article concludes: “‘No one is prepared for a Trump presidency,'” said Tony Fratto, a former assistant Treasury secretary in President George W. Bush’s administration, who now works for banking clients at Hamilton Place Strategies,” who added that Trump’s presidency will bring so many problems that a question like ‘Who is named SEC Chair?’ doesn’t matter as much. We’ll be putting a monster in the White House.”
Grace Macaluso reports for Canada’s Windsor Star on the steel industry’s enthusiasm for Trump’s anti-free trade agenda, quoting Barry Zekelman, CEO of Atlas Tube, who said of Trump’s anti-free trade policy, ‘I think it’s excellent for the steel industry. Finally after decades of abuse and cheating from many foreign companies, we may finally have an avenue to level the playing field.’ Matt Marchard, CEO of the Windsor-Essex Regional Chamber of Commerce, also welcomed the demise of the TPP.