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Banking Industry Pushes Back Against Platforms Calling to Reinstate Glass-Steagall

The leader of the American Bankers Association on Monday made it clear the Washington-based industry group isn’t pleased with today’s news that the Democratic and Republican platforms will include language calling for the return of the 1933 Glass-Steagall Act that separated consumer and investment banking functions.

“Unlike in many parts of the world, America’s banking industry is well poised to fuel strong economic growth and job creation,” Rob Nichols, ABA’s president and chief executive officer, said in a statement provided to Morning Consult. “Policymakers should encourage that instead of calling for 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.”

Paul Manafort, campaign chairman of presumptive GOP nominee Donald Trump, told reporters in Cleveland today that the Republican platform will include language calling for the reinstatement of the law that was repealed in 1999.

The draft Democratic platform also contains language favoring Glass-Steagall, which Sen. Bernie Sanders (I-Vt.) made a centerpiece of his economic arguments during his campaign for president.