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Britain’s Sunday Telegraph Worries Trump Could Adopt Glass-Steagall

Nov. 20, 2016 (EIRNS)—In an article today titled "Will Trump Back Reform on Finance—or Keep the Status Quo," a very worried Sunday Telegraph writes that the incoming Trump Administration is already committed to overturning the Dodd-Frank banking law. The question is: Will Trump go further and realize his campaign pledge to adopt the 1933 Glass-Steagall law which repealed in 1999?

Lyndon LaRouche noted that the Telegraph "should be worried. They have pushed really dumb policies, and Glass-Steagall is what is needed."

The London-based Telegraph asserts:

"Donald Trump himself was ... at one point saying he would scrap Dodd-Frank, but then saying he would reintroduce Glass-Steagall, which was repealed during Bill Clinton’s presidency.... [Trump] may consider it politically unwise to allow the [banking] industry to return to the casino-like excesses which led to the crash.

"Reintroducing Glass-Steagall, banning commercial banks from making high-risk investments, could set the tone for a rather more populist streak than the Republican establishment would like ... [which] could see the big banks being broken up.

"A measure to restore Glass-Steagall has been sponsored by Elizabeth Warren, one of the most left-wing Democrats in the Senate, and John McCain, Barack Obama’s Republican opponent in 2008."

Aaron Klein, a fellow at the Brookings Institution, told the Telegraph,

"It’s as if two Donald Trumps went into the woods and diverged.... [What] he could do is embrace ideas which have support at both ends of the political spectrum, such as bringing back Glass-Steagall."