Wall Street stocks plunged Thursday after Sean Spicer announced President Trump is “committed to breaking up the banks” as the campaign to drain the swamp and uproot the establishment moves into high gear.
Trump recently pledged to “do a big number“ on the Wall Street reform law known as Dodd-Frank, and now spokesman Spicer has confirmed Trump is also committed to honoring his pre-election pledge to bring back Glass-Steagall.
Bringing the Great Depression-era law back will force the mega banks to break themselves apart by separating their Wall Street investment bank divisions from their Main Street checking account businesses.
Spicer’s confirmation that President Trump plans to bring back Glass-Steagall, which was repealed in 1999 under President Clinton, has already upset Wall Street banksters and sent mega bank stocks tumbling in afternoon trading.
Taking care of the people, not the establishment
Trump bashed big banks before the election, especially Goldman Sachs. Breaking up the banks would appeal to Trump’s winning message of draining the swamp, returning the power to the people, and splintering the establishment.
Besides reigning in bankster profiteering, bringing back Glass-Steagall will also solve the Too Big To Fail problem exposed by the 2008 financial crisis.
The commitment to break up the banks should come as no surprise to close observers of Trump’s administration. President Trump has bamboozled his critics by rapidly moving to honor all of his campaign pledges, faster than any elected official in living memory.
Besides, Steve Bannon, Trump’s chief strategist, has been pushing to overhaul the out-of-control financial sector for years.
Bannon (a former Goldman Sachs banker) told BuzzFeed that he believes “you really need to go back and make banks do what they do: Commercial banks lend money, and investment banks invest in entrepreneurs and to get away from this trading.”
That’s Glass-Steagall in a nutshell.