Warren: End ‘too big to fail’
November 12th, 2013
03:36 PM ET
1 year ago

Warren: End ‘too big to fail’

Washington (CNN) - Sen. Elizabeth Warren has been in the 2016 presidential spotlight recently, but on Tuesday she was focused on the issue that helped get her to the Senate in 2012 – Wall Street reform.

The Massachusetts Democrat spoke about the merits of stricter financial regulation in remarks on Capitol Hill to a pair of liberal-leaning groups: Americans for Financial Reform and the Roosevelt Institute.

Five years after the financial crisis, there remain banks that are “too big to fail,” Warren warned. She called for sharper regulation of banking institutions and, more specifically, a revised version of the Glass-Steagall Act, the Depression-era law which restricted the role of certain financial institutions.

“The last thing we should do is wait for more crises” before doing something to prevent them, the senator said in her prepared remarks.

Warren, who helped create the Consumer Financial Protection Bureau, praised the Dodd-Frank financial reform law, but argued that it doesn’t go far enough.

The new Glass-Steagall act, Warren said, would reinstitute many of the old protections of its predecessor - protections the senator credited with helping to ensure decades of financial stability before it was dismantled in the 1990s.

The new law “would reduce failures of the big banks by making banking boring, protecting deposits and providing stability to the system even in bad times,” Warren said.

“It would reduce ‘too big’ by dismantling the behemoths, so that big banks would still be big – but not too big to fail or, for that matter, too big to manage, too big to regulate, too big for trial, or too big for jail.”


Filed under: Elizabeth Warren
soundoff (19 Responses)
  1. Dutch/Bad Newz, VA -aka- Take Back The House -aka- No Redemption Votes

    “It would reduce ‘too big’ by dismantling the behemoths, so that big banks would still be big – but not too big to fail or, for that matter, too big to manage, too big to regulate, too big for trial, or too big for jail.”
    ------------------------------------------------
    Absolutely Sen. Warren. The new Glass-Steagall Act should get bipartisan support. Even Sen. McCain said Glass-Steagall needs to be reinstated. No more bailouts & no more get of jail free cards.

    November 12, 2013 03:44 pm at 3:44 pm |
  2. Gurgyl

    This nation needs strong financial planning. We are still capitalistic nation. Stocks are live proof. Watch out India, China–turning to be rogue nations too with Muslim nations.

    November 12, 2013 03:59 pm at 3:59 pm |
  3. truth hurts but reality bites

    Does think government is too big to fail as well??? Quite the contrary, she thinks the bigger the better. If large banks are evil, why isn't large government just as evil?

    November 12, 2013 04:08 pm at 4:08 pm |
  4. Gunderson

    Well Lizzy,
    You too late lock barn door. All you Liberal Friends allow anybody buy house, no means to pay. Now Lizzy, go brew up some Tea and get back in Library. Those books need put back on shelves.

    November 12, 2013 04:09 pm at 4:09 pm |
  5. Rudy NYC

    Reviving Glass-Steagall would be a good move. Unfortunately, the twisted trails of who actually owns derivatives and mortgages almost prevents that from happening in a nondestructive fashion. The distinction between investment banks and savings and loans has become so blurred that they are practically inseparable. If anyone can figure out how to do it, they've got my vote, for sure.

    November 12, 2013 04:10 pm at 4:10 pm |
  6. Sniffit

    And despite anger at the TARP legislation that the Bush administration passed, the GOP/Teatrolls will find some way to cry foul because a liberal is saying things they agree with...and they can't possibly agree with those things when they come out of the mouth of a liberal.

    She's 100% correct in pushing a new Glass-Steagall. Banking and financial institutions have had a free-for-all since it was repealed and it's done us no good whatsoever. The only people it helped was the 1%, who stand in a position to be able to take advantage of the banks playing it fast and loose. The rest of us, not so much. Know why? Because the way the banks and the 1% take advantage of the lack of these regulations is by taking advantage of the rest of us.

    November 12, 2013 04:13 pm at 4:13 pm |
  7. anonymous

    This woman is a Communist. A home grown Massachusetts Communist.

    November 12, 2013 04:16 pm at 4:16 pm |
  8. Mr Dalloway

    I would vote for her as president

    November 12, 2013 04:18 pm at 4:18 pm |
  9. Rudy NYC

    truth hurts but reality bites

    Does think government is too big to fail as well??? Quite the contrary, she thinks the bigger the better. If large banks are evil, why isn't large government just as evil?
    ---------------------–
    No liberal has ever said that large government is a good thing. The problem is that "small government" sought by the right wing is actually no government, which is complete anarchy.

    November 12, 2013 04:23 pm at 4:23 pm |
  10. wiseup:

    The big banks that caused the financial collapse but got bailed by taxpayers with the TARP because these banks were too big to fail. A lot of this was caused because the Bush admin. bought in to deregulation and letting banks police themselves(letting the fox guard the hen house). The officers who played these corrupt games also got a get out of jail free card. since then regulations have been put back on banks.. end of the too big to fail and too big for jail. About time. Taxpayers are tired of bail outs. while CEOs and other officers are making more in a month than most people on main street will make in a life time, and avoid any legal ramimifications.

    November 12, 2013 04:32 pm at 4:32 pm |
  11. truth hurts but reality bites

    Rudy NYC

    truth hurts but reality bites

    Does think government is too big to fail as well??? Quite the contrary, she thinks the bigger the better. If large banks are evil, why isn't large government just as evil?
    -------–
    No liberal has ever said that large government is a good thing. The problem is that "small government" sought by the right wing is actually no government, which is complete anarchy.
    ---

    Of course they have, by their actions. When have thry EVER cut government? Never. And your lies about smaller government being no government are as dumb as it gets. Nothing but the usual lies spewed by the far left to paint a false choice.

    November 12, 2013 04:33 pm at 4:33 pm |
  12. smith

    Who repealed the Glass Steagall Act in the first place? Anybody want to take a guess? Hint( A liberal who also rewrote the community reinvestment act which led to the fall of the housing market).

    November 12, 2013 04:40 pm at 4:40 pm |
  13. GonzoinHouston

    We need a new chapter in the bankruptcy laws to cover institutions judged to be Too Big To Fail. Under it, said institutions would be broken in numerous parts and restrictions put in place to prevent them from being rejoined.

    November 12, 2013 04:43 pm at 4:43 pm |
  14. Ol' Yeller

    "No liberal has ever said that large government is a good thing. The problem is that "small government" sought by the right wing is actually no government, which is complete anarch"

    I respectfully disagree. The righties have no problem with the size of government per se'... the largest increase in the size of government ever, happened under dubya- DHS. They want small government when the government actually does work to help the disenfranchised... that is when they get all outraged. But create a huge bureaucracy to intrude in people's lives and take away their civil liberties (that's that 'freedom' thing thay always accuse the Dems of trying to take) and they are all for that.

    November 12, 2013 05:02 pm at 5:02 pm |
  15. Sniffit

    "Who repealed the Glass Steagall Act in the first place? Anybody want to take a guess? Hint( A liberal who also rewrote the community reinvestment act which led to the fall of the housing market)."

    POTUS doesn't do those things, just signs them. Fact is, both sides of the aisle thought repealing Glass-Steagall was a good idea. It wasn't. The fallout proves that. And yet, despite it being both their faults, only one party has the common sense to objectively acknowledge the problems repealing it caused and the common decency to admit it was a mistake and push for reinstituting such regulation once more to prevent the same. The other one is stuck on ideological stupid does nothing but deny the reality about it.

    November 12, 2013 05:07 pm at 5:07 pm |
  16. julnor

    We should be far more concerned about government that's too big to fail rather than banks. Small countries like Greece and Portugal can be bailed out. If the USA fails, there's not enough money in the world to bail us out. Reduce spending. Cut the deficits. Cut the debt.

    November 12, 2013 05:19 pm at 5:19 pm |
  17. scarf

    truth hurts but reality bites

    Rudy NYC

    truth hurts but reality bites

    Does think government is too big to fail as well??? Quite the contrary, she thinks the bigger the better. If large banks are evil, why isn't large government just as evil?
    ---–
    No liberal has ever said that large government is a good thing. The problem is that "small government" sought by the right wing is actually no government, which is complete anarchy.
    -

    Of course they have, by their actions. When have thry EVER cut government? Never. And your lies about smaller government being no government are as dumb as it gets. Nothing but the usual lies spewed by the far left to paint a false choice.
    ============================================================================================
    Conservatives believe in big government just as much as liberals; they just believe in using it for different things. Liberals want big social programs. Conservatives want to impose their social values on everyone else. Witness abortion, Teri Schiavo, government support for religion (Christianity only), etc. And, conservatives admit that liberals want to cut the size of government, but it's the part of big government that Conservatives like, i.e. bloated and unnecessary defense programs centered in the home districts of Republican Congressional leaders.

    November 12, 2013 05:20 pm at 5:20 pm |
  18. scarf

    smith

    Who repealed the Glass Steagall Act in the first place? Anybody want to take a guess? Hint( A liberal who also rewrote the community reinvestment act which led to the fall of the housing market).
    ===========================================================================================
    So, this is your argument to NOT re-instate Glass-Steagall? So, you're endorsing a liberals position?

    November 12, 2013 05:26 pm at 5:26 pm |
  19. The Elephant in The Room

    She is correct. We don't have capitalism.bWe socialize losses by corporation & banks [ the taxpayer/government absorbs those] but the 1%'ers want the profits to be distributed to the insiders.

    Barack and Hillary had better fill the Federal JKudiciary with people of Warren's intellect and ideology. It's time WE TAKE OUR COUNTRY BACK.

    November 12, 2013 05:31 pm at 5:31 pm |