REPUBLICANS, DEMOCRATS UNITE BEHIND REBUILDING WALL BETWEEN COMMERCIAL, INVESTMENT BANKING

 

RNC 2016Republicans and Democrats can agree on the need for rebuilding one kind of wall: the one that once separated the nation’s commercial and investment banks.

The Republican Party’s platform made public Monday on day one of the party's convention in Cleveland calls for the reintroduction of the Glass-Steagall Act.

The Banking Act of 1933, also known as the Glass-Steagall Act, barred affiliations between banks and securities firms. But the Gramm-Leach-Bliley Act of 1999 repealed those restrictions and allowed broad new business combinations among financial firms.

“We support reinstating the Glass-Steagall Act of 1933 which prohibits commercial banks from engaging in high-risk investment,” the platform language reads.

In their draft party platform released July 1, the Democratic Party also expressed support for “an updated and modernized version of Glass-Steagall.”

Whether the parties can find common ground here, or this is merely political posturing, remains to be seen.

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