I don’t understand this at all. Glass Steagall would help Goldman by disrupting the business models of JP, Citi, etc. Hmmmm. I suppose Jamie Dimon has been burning up the phone line?
Via Yves Smith at Naked Capitalism:
I’ve seen some pretty brazen performances over the years, but this one is a standout in a bad way. Steve Mnuchin tells Elizabeth Warren, with a straight face, that Trump’s campaign pledge to implement Glass Steagall has nada to do with breaking up banks. He also makes the utterly false claim that separating commercial and investment banks would hurt small bank lending. The integration between small business activities and investment banking is nada, save at most for brokerage and investmetn management targeting the more successful small business owners. That has bupkis to do with lending.