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Warren Slams Mnuchin for 'Orwellian' Doublespeak Over Glass-Steagall Reversal


#1

Warren Slams Mnuchin for 'Orwellian' Doublespeak Over Glass-Steagall Reversal

Lauren McCauley, staff writer

Sen. Elizabeth Warren (D-Mass.) slammed Treasury Secretary Steven Mnuchin and the Trump administration on Thursday for backtracking on promises to break up big banks and essentially gaslighting the public over previous statements made in support of a new Glass-Steagall Act.

The tense exchange came as Mnuchin, a former executive at Goldman Sachs and OneWest, explained to the Senate Banking Committee the administration policy that doesn't favor breaking up too-big-to-fail banks.


#2

Gutting Glass-Steagall, brought to you by Bill ("lesser evil") Clinton,corporate DINOs and Rethugricans....


#3

Mnuchin is galling beyond words and has been shown to be drawing himself from a shit sack of lies and hired by the industry to slather as much of that shit over ANY CLARITY WHATSOEVER that is brought to light. None of these derivatives hawkers are capable of MAKING anything useful for human life. The only thing they seem capable of is manipulating ways to hold human beings captive, use them as human shields and then throw all but their partners in crime under the bus - the latter they save in case WE THE PEOPLE demand - with pitchforks apparently that they cease and desist the parasitic practices, then true colors are flashed. Failing that, I vote that Crypto currencies be tested as alternatives to the fascist (corporation supplanting government) lying usurpation of human lives and natural balances.

MELTDOWN


#4

Mendacious pig makes trick Dick look honest. Got to pay strict attention when such as he open their mouths. Another candidate for tarring and feathering.


#5

Good rant - nothing says corruption, decay, and anti human values like the ruling corporate elites with their double speak of lies as truth.
Our tax dollars fund these criminals handsomely.


#6

Mnuchin is an embarrassing sod and Warren still only plays softball.

WFD


#7

Although Trump has been spot on complaining about "fake news" he fails to mention that he and the GOP have originated more fake news than the rest of the world's ' fake news originators combined.

Trump's campaign was serial fake news, including his references to Glass-Steagall. His regime has been and continues to be founded on serial fake news.

Glass-Stegall was part of FDR's New Deal. Trump, the GOP and all of Trump's appointees are committed to ending what little remains of FDR's New Deal and LBJ's great society post haste.


#8

Mnuchin: 21st Century Glass Steagall. Translation: 21st Century Goldman Sachs act fully deregulating banks, investment and insurance companies so they can continue their corrupt, criminal, and parasitic practices worldwide. With a clause at the end with print so small that it cannot be read with the naked eye, that reads: "In the event of failure of any said organization, the federal government (and taxpayers) will be mandated to bail out each and every one without penalties or paybacks. And such failure does not negate the payment of bonuses and stock options to said executives at time of failure."


#9

at first I was upset that trump reneged on all campaign promises...then I realized thats what ALL politians do
(I voted for jill)


#10

politicians...


#11

Elections of incumbents is a referendum on how closely they did what they said they were going to do when campaigning. Will the people demand honesty on the campaign trail? Or not, as long as they have their football, basketball and dancing with the stars?
If a person says one thing to get elected and then does the opposite, our American Sensibilities must demand retribution. In past centuries they would have been tarred and feathered, after they were impeached AND CONVICTED of high crimes, and before they show up at a federal prison for the remainder of their potential tenure as POTUS. That's 8 years in prison. And I suggest Leavenworth!


#12

I watched the clip embedded above and fail to see how Warren was throwing softballs. She couldn't have been more emphatic or more dogged in getting Mnuchin to display his/their hypocrisy. Warren is a cagey politician whose actions (or in-actions) I often disagree with, but not for her questioning of Mnuchin in this hearing. What is more telling is that this exchange was nowhere to be seen on the msm.


#13

Munchkin: Doesn't count what I said cuz my fingers wur crossed.

This type of rhetoric is ironically reminiscent of. . .Hillary! (and Bill.)


#14

The 'nuch. Just another complete fraud forced upon the American people, along with EVERY other 45 Cabinet appointee.
Bannon said publicly (at CPAC) that the (then) nominees were chosen for their willingness to "deconstruct (fancy word for "destroy") the administrative state."


#15

The article is confusing and I'm not sure where the author is or if the author understands the issue clearly. The results of the massive bank failures that took out one big name bank can be directly traced to the Gramm Leach Bliley act so seductive that 95 American senators voted for it and signed by Clinton. It was, in fact the greatest smoke and mirrors and turned the banks back again to the casinos of the 1920's. They could take deposit money and gamble on oil staying at 150.00 a barrel, they could even gamble on credit. (i.e.) Glass-Steagal had outlawed those practices. Dodd-Frank simply said you can't buy stuff on credit for resale. They can still gamble with our money, they just have to have the money to back up their markers. The original Glass-Steagal was well developed and still fits the 21'st century. Look out when the rhetoric goes: "it's complicated". It isn't if you are honest only crooks use "it's complicated"


#16

Actually more than one. Investment bank Bear Stearns. Investment bank Lehman Brothers. Commercial bank Washington Mutual. FNMA. FMAC. More.

Actually the causation can be traced to a stack of causes, and the Gramm-Leach-Bliley repeal of Glass-Steagall was one of the smaller ones. None of the big banks that got in trouble were in violation of the old Glass-Steagall no-combinations of commercial and investment banks, and some of the rescues were explicit combinations, like Bank of America buying Merrill-Lynch.

The cause of the financial crisis can be traced to an excess of mortgage loans made that the borrowers could not pay back. There were a stack of reasons why too many loans were made.
* The Federal Reserve kept interest rates too low for too long. When they start raising rates what had been "good loans" started becoming unaffordable.
* The home industry over-promotes the value of buying a home, and of a home as a builder of wealth.
* GW Bush with his "ownership society" and Bill Clinton with his anti-redlining lending-discrimination thrust wanted to benefit poor folk, particularly of color, by getting them into homes regardless of whether they could afford them. They favored low interest rates to help get poor folk with bad credit into those loans. Banks are graded on their community lending scores, and thus pressured to lower their lending standards for some (all?) neighborhoods.
* Bankers were rewarded for playing along. Greed was countenanced if the regulators' wishes for more housing were satisfied.
* Several sorts of regulators were involved. The anti-lending-discrimination regulators who wanted more people to get loans beat the banking safety regulators.
* Localities aren't much interested in affordable housing. They want property taxes and engage in several sorts of "exclusive zoning". Larger more expensive houses is one way.
** Federal easy mortgage money was intended to go around those local restrictions...
* The bank regulators countenanced securitization as a way of making more loan money available.
* Everyone thought home prices could only go up, which had impacts on the next several points.
* Pension funds had mismanaged their money earlier and wanted easy high earnings, and thought MBS-s were it. They were eager to buy MBS-s.
* Credit rating agencies didn't do their job, until it was too late. This, btw, was a known problem long predating this crisis.
* Banks and mortgage servicers took a lax view towards loan defaults, believing that it was easy to foreclose and resell the house on the market for a profit.
* A few too many people treated their houses like ATMs, instead of paying down their mortgage loans.
* FNMA and FMAC participated in this "too easy to borrow" game, and towards the end they also bought more MBS-s than they should have.

And quite possibly I haven't named all the causes.

People say that TBTF is because of the very bad consequences to the economy if a TBTF bank failed.
-- I add that before that we have a problem with cowardly politicians and regulators who aren't willing to let a big bank fail. So our aim in preventing TBTF is to keep banks small enough that the politicians and regulators will let that bank fail. And God save us from suffering a wave of such failures.

I personally assign only a smallish part of the blame of 2008 on the repeal of Glass-Steagall. But I also think that restoring Glass-Steagall is an "easy" way to restore safety and public trust to our banking and finance system. I can also advocate for a few more things, such as ending the ability of corporations to deduct debt-interest from their taxes, and making corporate taxes more progressive, so the bigger the business and its profits, the higher its tax bill.