Note from Editors:
Former Maryland Gov. Martin O’Malley boosts his Democratic presidential prospects with a set of #financial reform proposals. These include: separating commercial and #investment banking; closing the revolving door between regulators and Wall Street; appointing independent-minded administrators to prosecute crimes; and imposing harsher penalties on firms found to have broken the law.
by Samantha Lachman
WASHINGTON — Former Maryland Gov. Martin O’Malley worked to boost his Democratic presidential prospects Thursday with a set of financial reform proposals.
In a conversation with former Rep. Brad Miller (D-N.C.), who served on the House Financial Services Committee, O’Malley focused on four policies he’d push if he is elected in 2016: reinstating the law that separated commercial and investment banking; closing the revolving door between regulators and Wall Street; appointing independent-minded administrators to prosecute crimes; and imposing harsher penalties on firms that are found to have broken the law.
O’Malley also spoke in favor of doubling #funds at financial regulatory agencies like the Securities and Exchange Commission.
The proposal to break up large banks was aimed, in particular, at former Secretary of State Hillary Clinton, though O’Malley didn’t mention the leading Democratic candidate by name. Clinton’s husband, former President Bill Clinton, signed the repeal of the Glass-Steagall law in 1999. Economists have pointed to the repeal as one contributor to the 2008 financial crisis.
“We made a commitment to the American people that we’d follow through on Wall Street reform, and we have not done that yet,” O’Malley said Thursday. “Any Democrat running for president who expects to succeed in the general election I believe will need to make basic commitments … to pass a modern version of Glass-Steagall.”
O’Malley’s other rival for the nomination, Sen. Bernie Sanders (I-Vt.), said last week that he supports Massachusetts Democratic Sen. Elizabeth Warren’s bill to create an updated version of the Glass-Steagall legislation. One of Clinton’s economic advisers said that reinstatement of the law would not factor into her campaign’s proposals.
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