Law360, New York (August 11, 2016, 3:51 PM ET) — Former Secretary of State Hillary Clinton on Thursday said that she intends to tighten financial regulations if she wins the presidential election in November even as she hopes to roll back red tape in order to spur lending by community banks and credit unions.
While Hillary Clinton’s speech focused on issues like taxes, international trade, reducing child care costs and boosting the power of labor unions, the former senator from New York also blasted Donald Trump for saying that he intended to roll back the reforms required under the 2010 Dodd-Frank Act. (Credit: AP)
Clinton, the Democratic presidential nominee, used her speech in Warren, Michigan, to contrast her vision for the U.S. economy with that presented in a speech earlier in the week by her Republican rival, self-proclaimed billionaire real estate developer and reality television star Donald J. Trump. While Clinton’s speech focused on issues like taxes, international trade, reducing child care costs and boosting the power of labor unions, the former senator from New York also blasted Trump for saying that he intended to roll back the reforms required under the 2010 Dodd-Frank Act.
“We should strengthen those rules so that Wall Street can never wreck Main Street again,” Clinton said.
During her bruising primary campaign against Sen. Bernie Sanders of Vermont, critics alleged that Clinton would not be a tough cop when it came to Wall Street wrongdoing, citing actions by her husband, former President Bill Clinton, that they say ultimately led to the 2008 financial crisis. Chief among critics’ concerns was the repeal of the Glass-Steagall Act, a Depression-era law that split investment banking from traditional banking.
Clinton also faced charges that the huge amounts of money she made in speeches to Wall Street banks, including Goldman Sachs Group Inc., would lead her to ease up on Wall Street regulation.
But Clinton has been firm in saying she wants to move beyond Dodd-Frank rules, with a focus on bringing new regulations to the “shadow banking” sector and adding an extra “risk fee” for the biggest financial institutions.
Trump, in his Monday speech in Detroit, said little about financial regulation. Instead, he promised a moratorium on new regulations and a review of all agency rules should he take office. In earlier interviews he vowed to repeal the Dodd-Frank Act, a commonly espoused Republican talking point.
Major questions remain about what a Trump administration would mean for banks.
On Thursday Clinton said Trump’s overall economic plan, including his stated goal of repealing the Dodd-Frank Act as well as a repeal of the estate tax and other measures, were meant to help the Republican candidate and his wealthy friends.
She also blasted Trump for wanting to eliminate the Consumer Financial Protection Bureau, the federal consumer finance watchdog and one of the major pillars of the Dodd-Frank legislation.
“Why would you get rid of that?” she asked.
Yet Clinton suggested that there were areas where banks could use a boost.
In a section of her speech about cutting back on red tape, Clinton said that she wanted to make it easier for community banks and credit unions to extend credit to small businesses and entrepreneurs in a bid to boost jobs.