On July 18th, Rob Nichols, the President of the American Bankers’ Association, which is controlled by the mega-banks, struck back against Republican Presidential candidate Donald Trump. Nichols criticized Trump’s insistence to restore the Democratic U.S. President Franklin Delano Roosevelt’s top reform of the U.S. economy, the Glass-Steagall Act, which prevented another taxpayer bailout of Wall Street firms for their gambling losses — it was the law President Bill Clinton with overwhelming Republican support in 1999 repealed. Trump is committing himself against that Clinton-Republican repeal of FDR’s law. Trump insists it be restored so that there won’t be a repeat of the Bush-Obama Wall Street bailout.
ABA chief Nichols told Morning Consult, “America’s banking industry is well poised to fuel economic growth and job creation,” and so they should continue to be supported by the government. He called Trump’s stand to restore Glass-Steagall “a return to Depression-era regulation that would restrain banks’ ability to drive our economy forward. All of our bank regulatory agencies have agreed that Glass-Steagall would not have prevented the crisis or the housing market collapse.”
Many economists disagree with the ABA on that, and have called for restoration of the Glass-Steagall Act.