Democratic Sen. Elizabeth Warren of Massachusetts continued her rhetoric of targeting banks that she says contribute to income inequality and economic fluctuations.
Surprisingly, Warren criticized the Dodd-Frank financial reform law, passed in 2010 as a response to the 2008-09 economic crisis. The law has been greatly supported by the Democratic Party since its implementation.
“Let’s get real: Dodd-Frank did not end too-big-to-fail,” the Massachusetts senator said.
She then supported an idea to “break up the biggest banks,” of which she blames for the 2008 recession. Sounding presidential, Warren listed new policy ventures to prevent another recession from occurring and provided more specifics on how she would regulate the banking industry, The Washington Examiner reported.
Some of the policies she mentioned were placing greater government oversight on the Fed by removing their ability to bail out banks in the future, to change current tax policies that allow banks to incentivize more on their equity than their debt, and limiting the size of banks.
“When those banks are broken up and forced to bear the consequences of the risks they take on … regulatory oversight can be lighter and clearer as well,” she commented.
Critics of Warren’s ideas state that bigger banks thrive when they are larger and left alone by government oversight and regulations. Republicans are also opposed to Warren’s more progressive tone and ideals, as Warren’s policies would hand over power to the federal government.
Warren did save some of her criticism for Republicans, saying the GOP’s ideas to financial reform was “pure crony capitalism.”
Warren has been talked about as a clear challenger to Hillary Clinton for the Democratic nomination for president in 2016, but she has repeatedly said she isn’t running. While Clinton is characterized more for her veteran status and traditional Democratic stance in politics, Warren is known for her more progressive, liberal views concerning banking regulations and student loan debt.