Senator Wants A List of Trump Business Associates; Mnuchin Wants A Note

Mnuchin indicated that the Trump administration supports a 21 century version of the Glass-Steagall Act, except for the part about separating commercial and investment banks, which is substantially what is meant by Glass-Steagall.

On Thursday, Treasury Secretary Steve Mnuchin told that the economy of United States can grow 3% or more in Senate hearing.

A renewed push on a repeal of Obamacare is now being worked on in the Senate while reports that President Donald Trump may have tried to interfere with a federal investigation has shifted focus away from the congressional agenda. Sherrod Brown, D-Ohio, accused Treasury Secretary Steven Mnuchin of failing to answer his questions about President Trump's business ties to people who might be violating money laundering and other USA laws. Mnuchin has previously said that a dynamic scoring model analysis showed the administration's tax cuts could pay for themselves. If we had supported a full Glass-Steagall we would have said at the time that we believed in Glass-Steagall, not a 21st century Glass-Steagall.

"We during the campaign. specifically came out and said we do support a 21st-century Glass-Steagall", Mnuchin told Warren.

While Mnuchin didn't identify who would get the permanent post, he has recommended Joseph Otting, who was chief executive officer of OneWest Bank when Mnuchin was chairman of the company, according to people familiar with the matter. But critics of the idea note that the big failures during the financial crisis involved investment banks and commercial banks, but not financial institutions that did both. And he said that report will be followed up with others recommending further changes to the financial regulatory regime. Some administration officials have suggested they were in favor of Congress passing an updated version of the Depression era Glass-Steagall law that split commercial and investment banking, though they have been vague about what that actually meant. "So we're going to look at that", Trump said earlier this month when asked about breaking up banks.

Warren grilled Mnuchin on the Trump administration's stance on Glass-Steagall after the treasury secretary seemed to contradict himself. "This is like something straight out of George Orwell".

"You said, "We need a 21st century Glass-Steagall" at your confirmation hearing", Warren said to Mnuchin, "and now you've said exactly the opposite".

WARREN: Yeah, I'm not, because I really have to understand what you've just said.

Mnuchin's statement put those questions to bed - and drew the ire of Democratic Senator Elizabeth Warren, who argued that anything called "Glass-Steagall" needed to include separating risky trading activities from old-fashioned banking.

Mnuchin added, "There'll be a box that you have to check that says, I'm eligible for the business tax, which is 15 percent".

  • Anthony Vega