CNBC: Hillary's nuance doesn't play in Wall St bashing
Ben White for CNBC: Hillary's nuance doesn't play in Wall St bashing
"I'm going to go after risk," Clinton said. "Sometimes risk is associated with bigness of a bank, sometimes risk can be an insurance company, sometimes risk can be in the shadow banking system."
It was a another formulation of something Clinton has said many times, that it wasn't just big banks that drove the financial crisis but also risk-taking insurance giants like AIG and smaller investment banks like Lehman Brothers.
It's a nuance that infuriates ardent financial reformers who want to reinstate the Glass-Steagall wall between investment and consumer banking. Clinton has pointedly refused to endorse rebuilding that wall, which came down under her husband's presidency. Sanders and former Maryland Gov. Martin O'Malley both support reinstating Glass-Steagall.
O'Malley's campaign jumped all over Clinton's comments. Deputy campaign manager Lis Smith issued a statement saying "it's disappointing that Secretary Clinton is embracing arguments pushed by the architects of deregulation that big banks did not play a major role in the financial crisis. They, in fact — along with the institutions they aided and abetted, like AIG — were the cause of the collapse."
Smith added that "we need a modernized Glass-Steagall to help reduce risk, the size of too-big-to-fail banks, and the chance of another financial collapse — that's exactly what Gov. O'Malley is pushing for."
Related:
Yahoo Politics: Hillary Clinton doesn’t support revival of Glass-Steagall Act
Democracy Now!: Robert Reich on Glass-Steagall and Bernie Sanders
Clinton: Cooperation, not speeches, is needed to regulate Wall Street
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