Clinton Would Be Among ‘Better’ Choices for Wall Street: Seiberg

Hillary Clinton “would be one of the better candidates for financial firms, as she is pushing concrete reforms where one can understand the downside risk rather than more radical overhauls,” Guggenheim’s Jaret Seiberg says.

  • Details released so far of Clinton’s plan to tighten Wall Street rules and boost accountability suggests the Democratic presidential candidate will push for “popular, achievable, and narrowly focused” actions
  • “The impact on financial firms from many of her initiatives would be mixed,” Seiberg writes in note after Clinton campaign yday unveiled parts of plan; more details expected later today
  • Plan so far doesn’t include anything that would force big banks to break up or trigger “unintended consequences,” such as restoring Glass-Steagall Act: Seiberg
    • “We have argued for many months that Hillary Clinton is one of the few candidates running for president who historically has shown a broad understanding of how the financial system works”
  • NOTE: Clinton proposals include a tax related to high-frequency trading; changes to Volcker Rule; reinstatement of “swaps push-out” rule for banks’ derivatives trading
  • NOTE: In Iowa on Oct. 6, when asked if she supports restoring Glass-Steagall and breaking up “too-big-to-fail” lenders, Clinton said her plan is the “best way to go after Wall Street abuses and to rein in the too-big-to-fail banks and other institutions”
    • Solely reviving Glass-Steagall, which separated banks’ commercial and investment banking units, wouldn’t address issues with non-bank financial cos. that were “as big a problem” in 2008 crisis as large banks, she said
    • “If you only reinstate Glass-Steagall, you don’t go after all these other institutions in what is called the shadow-banking system -- hedge funds and other big financial entities that have too much power in our economy”: Clinton
Earlier: Hillary Clinton Steps Into High-Frequency Debate With Tax Plan

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