Unnecessary Reform
Sifma, in a letter than ran some 260 pages, devoted about a paragraph to the issue, arguing that the litany of rules already imposed on banks make structural reform “unnecessary.”
Another organization, the Clearing House Association, barely noted the controversy at all, tucking in roughly a sentence on the issue deep into a 50-page draft that was recently sent to its members.
The lack of verbiage alarmed some of the lenders it represents, especially after Trump’s comments, and they lobbied to change it. Greg Baer, the association’s president, explained that he was reluctant to press the issue since Congress was unlikely to ever pass a new Glass-Steagall, people briefed on the discussions said. Instead, he offered to personally raise the matter with Treasury officials.
A Clearing House spokesman declined to comment. But when it released its letter to the Treasury earlier this week, there was new language opposing any move to break up banks. And, it was more prominently placed, in the last paragraph of the introduction.
This article was provided by Bloomberg News.