Read time: 2 minutes

Elizabeth Warren: 'Too Big To Fail' Is Worse Than Before Financial Crisis

Senator Elizabeth Warren called on Congress to solve the ‘too big to fail’ banking fiasco.

Elizabeth Warren Discusses The 21st Century Glass Steagall Act

In remarks to Americans for Financial Reform and the Roosevelt Institute on Tuesday, Senator Elizabeth Warren said that the problem of banks considered "too big to fail" has only gotten worse since the 2008 financial crisis, and discussed the actions Congress needs to take to end "Too Big to Fail" and help prevent future financial crises:

Senator Warren has joined Senators John McCain, Maria Cantwell, and Angus King to offer up one potential way to address the Too Big to Fail problem -- the 21st Century Glass Steagall Act.

"Today, the four biggest banks are 30 percent larger than they were five years ago. And the five largest banks now hold more than half of the total banking assets in the country," Warren said. "Who would have thought five years ago, after we witnessed firsthand the dangers of an overly concentrated financial system, that the 'too big to fail' problem would only have gotten worse?"

"We should not accept a financial system that allows the biggest banks to emerge from a crisis in record-setting shape while working Americans continue to struggle," said Senator Warren in her speech today. "And we should not accept a regulatory system that is so besieged by lobbyists for the big banks that it takes years to deliver rules and then the rules that are delivered are often watered-down and ineffective.

"What we need is a system that puts an end to the boom and bust cycle. A system that recognizes we don't grow this country from the financial sector; we grow this country from the middle class."

Senator Warren has joined Senators John McCain, Maria Cantwell, and Angus King to offer up one potential way to address the Too Big to Fail problem -- the 21st Century Glass Steagall Act.

Warren said that the lobbyists from Wall Street said the sky would fall if they cannot use deposits in checking accounts to perform their high risk activities. She said they also said that in the 1930s. “They were wrong then and they are wrong now. The Glass Steagall act will restore the stability of the financial system that began to disappear in the 1980s and 1990s”, she said.

The full text of Senator Warren's remarks as prepared for delivery is available here.

H/T Egberto Willies

Can you help us out?

For 16 years we have been exposing Washington lies and untangling media deceit. We work 7 days a week, 16 hours a day for our labor of love, but with rising hosting and associated costs, we need your help! Could you donate $20 for 2020? Please consider a one time or recurring donation of whatever amount you can spare, or consider subscribing for an ad-free experience. It will be greatly appreciated and help us continue our mission of exposing the real FAKE NEWS!

More C&L Coverage

Comments

We welcome relevant, respectful comments. Any comments that are sexist or in any other way deemed hateful by our staff will be deleted and constitute grounds for a ban from posting on the site. Please refer to our Terms of Service (revised 3/17/2016) for information on our posting policy.