The Republican Party will call for the reinstatement of the Depression-era Glass-Steagall law that separated investment and consumer banking functions, a top official for Donald Trump’s presidential campaign said Monday.
Paul Manafort, Trump’s campaign chairman, told reporters in Cleveland that the GOP platform will “call for the reintroduction” of Glass-Steagall, which would “create barriers between what the big banks can do and try and avoid some of the crisis that led to 2008.”
“We believe that the Obama-Clinton years have passed legislation that has been favorable to big banks, which is why you see all of the Wall Street money going to her,” Manafort said, referring to presumptive Democratic nominee Hillary Clinton. “They know she’s their champion, and they’re supporting her fully. We are supporting small banks and Main Street.”
The draft Democratic platform calls for “an updated and modernized version of Glass-Steagall.” Reinstating the law was a key economic position of Sen. Bernie Sanders (I-Vt.), Clinton’s longtime challenger for the Democratic nomination before he endorsed her for president. Former President Bill Clinton signed the repeal of Glass-Steagall elements contained in the 1999 Gramm-Leach-Bliley Act.
Manafort also said the GOP platform backs legislation that deals with “some of the mistakes made in imposing Dodd-Frank.” He did not explicitly refer to the Financial CHOICE Act, a proposal from House Financial Services Committee Chairman Jeb Hensarling (R-Texas) that’s considered the conservative alternative to the 2010 Dodd-Frank law.
Language “about having better trade deals and the need to negotiate better trade deals” will also be part of the GOP’s platform, Manafort said. Trump has railed against the current model for trade policy, including the 12-nation Trans-Pacific Partnership, on the campaign trail.