Business

White House distances itself from Glass-Steagall push

by Kevin Cirilli - 07/17/15 1:56 PM ET

The White House wants to keep its distance from a liberal push to re-implement legislation that would break up big banks.

Progressives like Sen. Elizabeth Warren (D-Mass.) are calling for a reimplementation of Glass-Steagall, which would require big banks to divide commercial and investment banking.

{mosads}”At this point, we believe that the kind of implementation of Wall Street reform is the most effective way to protect our economy and middle-class taxpayers,” White House press secretary Josh Earnest told reporters at a press briefing Friday when asked whether President Obama supports it.

Earlier this month, Warren brought back legislation that would re-implement the law.

Democratic presidential front-runner Hillary Clinton hasn’t said whether she supports it. Two of Clinton’s main 2016 primary challengers — Sen. Bernie Sanders (I-Vt.) and former Maryland Gov. Martin O’Malley — both support the push.

Earnest said the administration is still focused on implementing the 2010 Dodd-Frank Wall Street Reform law.

“Wall Street reform has been incredibly effective at reforming our financial system in a way that looks our for the interests of middle-class families and taxpayers,” Earnest said.

Most economists and Federal Reserve policymakers refute liberals’ assertions that the repeal of Glass-Steagall was part of the cause of the 2008 crisis.

Tags Glass-Steagall Josh Earnest