Elizabeth Warren and Wall Street react to Bernie’s plan
By Robert Reich
The reaction is in to Bernie Sanders’s big, bold plan to break up the big banks and tackle Wall Street fraud.
Elizabeth Warren loves his plan:
“I’m glad Bernie Sanders is out there fighting to hold big banks accountable, make our economy safer, and stop the GOP from rigging the system.”
On the other hand, Wall Street is deeply concerned about what Bernie is proposing — and how it’s influencing lawmakers and leaders. For example, the Huffington Post reported that Wall Street analyst Jaret Seiberg issued a warning to his clients that the Sanders plan should be taken very seriously:
“This is not just about breaking up the biggest banks. Sanders is calling for a system in which financial firms are smaller, the government controls the interest rates that banks charge, certain fees are capped, the Postal Service becomes a viable competitor to banks and payday lenders [and] CEOs would be criminally liable if employees defraud customers.
Sanders appears to argue that he could implement much of this agenda on his own even without the need for legislation. We caution against dismissing this view. There is much that the White House, Treasury, or the financial regulators could do by executive order… Bashing Wall Street is a populist message that appeals to conservatives and liberals. Sanders has now laid out the most radical option on the table that other candidates will be judged against.”
How does Wall Street feel about Hillary Clinton?
“We continue to believe Clinton would be one of the better candidates for financial firms,” wrote Jaret Seiberg of Guggenheim Partners in a note to clients analyzing her plan.