On Monday, Democratic presidential candidate Hillary Clinton delivered her first major policy speech in her election campaign. Among the issues, Ms. Clinton wants to address if elected president is a tighter oversight on Wall Street and the “too big too fail financial institutions.”
He also mentioned that currently there are major risks affecting the “shadow banking industry.” Plus she pledged that she would do whatever possible to shrink the income gap, boost income for the middle class, and increase taxes on the rich.
Yet, according to her economic adviser Alan Blinder, Ms. Clinton would not try to separate big commercial banks from their investment activities under a revamped Glass-Steagall Act.
But Ms. Clinton did vowed that if she is elected president shoe would tighten the rules on financial institutions to make sure that another 2008 banking collapse won’t happen again.
The speech was delivered at The New School, a liberal university in Greenwich Village, Manhattan. Teresa Ghilarducci, an unofficial economic adviser of the presidential hopeful, said that Ms. Clinton’s speech on Wall Street ended up lengthier than the initial draft.
Ms. Clinton also pointed out that big banks on Wall Street shouldn’t be considered “too big too fail.” On the other hand, she and her husband Bill Clinton received handsome sums of money to deliver speeches for Wall Street’s major players including the Carlyle Group and Goldman Sachs.
Moreover, during her tenure as senator of New York, she served the interests of Wall Street bankers, while during her presidential campaign she sought financial institutions’ money to support her campaign.
But during this Monday’s speech she changed stance. She recalled that before the financial collapse that sent ripple effects across the whole world bankers “piled risk upon risk,” while lawmakers were either unable or unwilling to do something against it.
“I will appoint and empower regulators who understand that too big to fail is still too big a problem,”
She also said that she would make sure that brokers won’t buyback stocks just to drive prices up and employers would share profits with their workers. She also announced a plan to encourage long-term investments rather than rapid trades.
She also pledged that she would promote tighter oversight over high-frequency traders, hedge funds, non-banks that deliver financial services. She described these players as “new kinds of entities which receive little oversight at all.”
She also said that America’s success relies on an income hike for “hard-working families,” rather than on CEOs and money managers’ success. On the other hand, she failed to specify some policy proposals into those directions.
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