The Massachusetts Democrat asked Cohn about his thoughts on Glass-Steagall. After Cohn answered, Senator Robert Corker, a Tennessee Republican, pressed the White House official to clarify his views.
Spokesmen for Warren and Corker didn’t immediately respond to requests for comment.
Dismantling the nation’s banking giants isn’t a partisan issue, which is one reason why Wall Street fears the idea could gain traction. Both political parties -- and many voters -- still resent that taxpayers had to rescue the industry with a $700 billion bailout during the 2008 financial crisis.
Bipartisan Issue
Republicans included a return of Glass-Steagall in the party platform they approved in July during their national convention. Warren herself has proposed legislation with Republican Senator John McCain of Arizona called the “21st Century Glass-Steagall Act.”
Advocates for bringing the law back say smaller banks could be allowed to fail without threatening the economy or needing bailouts. They also argue that a less powerful finance industry wouldn’t have as much influence over Washington policy. Wall Street executives counter that it would be impossible for broken-up lenders to compete with overseas mega-banks and that the 2010 Dodd-Frank Act has made the industry much safer.
Wednesday’s Capitol Hill meeting with Cohn was arranged by Senate Banking Committee Chairman Mike Crapo, and included lawmakers from both political parties and their staffs. The discussion covered a wide range of topics, including financial regulations and overhauling the tax code, the people said.
A Crapo spokeswoman declined to comment.
This article was provided by Bloomberg News.