Re: Glass steagall

From:gbsperling@gmail.com To: ggensler@hillaryclinton.com CC: jsullivan@hillaryclinton.com, ntanden@gmail.com, john.podesta@gmail.com, mschmidt@hillaryclinton.com, mshapiro@hillaryclinton.com, davidckamin@gmail.com Date: 2015-09-11 16:58 Subject: Re: Glass steagall

Very much agree Sent from my iPhone > On 11 Sep 2015, at 11:53, Gary Gensler <ggensler@hillaryclinton.com> wrote: > > If we need words I would go with " I will work to reduce the size of the banks in a heartbeat" or if more is needed to go with "I will work to reduce the size or even breakup the banks in a heartbeat ..." rather than a reference to reinstating Glass Steagall. > > I say this as we've already said that crisis wasn't about Glass Steagall restrictions but about risk. Also I believe that as a policy matter that the issue about too big or too risky to fail is about size and risk not Glass Steagall. I would prefer not to concede that point. > > Further, Dodd Frank gave the FDIC and Fed to restructure or even downsize banks if the living will process leads to a conclusion that the risk of resolution is too great. > >> On Fri, Sep 11, 2015 at 2:37 PM, Jake Sullivan <jsullivan@hillaryclinton.com> wrote: >> That’s close to what we have minus the words Glass Steagall. Are those magic words for you? >> >> >> >> From: Neera Tanden [mailto:ntanden@gmail.com] >> Sent: Friday, September 11, 2015 2:17 PM >> To: Jake Sullivan <jsullivan@hillaryclinton.com>; John Podesta <john.podesta@gmail.com>; Gene Sperling <gbsperling@gmail.com>; Gary Gensler <ggensler@hillaryclinton.com>; Mike Schmidt <mschmidt@hillaryclinton.com>; Michael Shapiro <mshapiro@hillaryclinton.com>; David Kamin <davidckamin@gmail.com> >> Subject: Glass steagall >> >> >> >> i think most people know I worry that this is the closest thing to an Iraq vote we have to face us. And a big potential problem in the debate. >> >> >> >> Why can't she say the following: >> >> Too big to fail are problems. Should never happen again etc. I will take steps - higher cap requirements, whatever you have on list -to ensure we protect Americans. I think those will work better. >> >> >> >> I will work every day to make sure we protect Americans so they never suffer for the excesses on Wall Street. But if banks are growing too big to manage and we need to take these steps tetc etc, believe me I will work to reinstate glass steagall in a heartbeat bc this Americans losing so much for the banks can never happen again. >> >> >> >> She's not conceding it was responsible for the financial crisis. But her openness will be better than a hard and fast position that puts her on the bank side of the ledger. >> >> >> >> Anyway I just offer it as a thought. >> >