Mnuchin says breaking up big banks would be a 'huge mistake'

Mnuchin says breaking up big banks would be a 'huge mistake'

Mnuchin says breaking up big banks would be a 'huge mistake'

He suggested that the Trump administration would not favor the controversial border-adjustment tax (BAT) which taxes imports while exempts exports, saying it might bring risks to the US economy.

Liberal firebrand Sen. Elizabeth Warren (D-MA) forcefully criticized Treasury Secretary Steven Mnuchin during a Senate committee hearing Thursday, for what she said was a contradictory stance on banking regulations - insinuating that Mnuchin changed positions in an Orwellian fashion.

"There actually wasn't a reversal", Mnuchin responded.

Mnuchin then suggested Brown send a note about what he wants, and "we will review internally whether it's appropriate to come from us or somewhere else". China remains on a watch list.

During the hearing, the Treasury secretary also focused on the Trump administration's goals of loosening regulations on Wall Street, moving ahead with a historic tax overhaul plan and revisiting trade deals. according to his testimony.

"There are aspects of Glass-Steagall that you support, but not breaking up the banks and separating commercial banking from investment banking?"

During the latest reporting period, the Treasury Department found that none of the targeted nation had met the criteria for "currency manipulator", Mnuchin explained.

Trump told Bloomberg in an interview on May 1 that he was "looking at that right now" when asked about breaking up the big banks, and the idea was in the Republican Party's platform.

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MNUCHIN: Again, I'm well aware of what Glass-Steagall was. She said Mnuchin's policy discussion was "like something out of George Orwell".

Basically, Abelson reported, bank executives expect the new Glass-Steagall to be a deregulation effort for smaller banks, with little involving larger banks, that is sold under the guise of a bill that anti-Wall Street groups have been clamoring for. We think that would be a huge mistake.

WARREN: Yeah, I'm not, because I really have to understand what you've just said.

"What do you think [Glass-Steagall] was if it wasn't separating commercial banking from ordinary banking?"

Warren said Mnuchin's support for Glass-Steagall and rejection of the main aspect of the original law made little sense.

But Democrats weren't happy with many of Mnuchin's answers.

"Tell me what 21st-century Glass-Steagall means if it doesn't mean breaking apart banks?" asked Warren.

"This is just weird, the idea that you can say you're in favor of Glass-Steagall but not breaking up the big banks", Warren eventually shot back.

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