Banking Law Could Affect JP Morgan and Others
Recently, Senator Elizabeth Warren filed a bill that would impact banking regulations. This 21st Century Glass Steagall Act would separate traditional banking activities, such as checking and savings from riskier activities, such as private equity and hedge funds.
Elizabeth Warren said that big banks are still posing a threat. She also stated that, “The four biggest banks are now 30% larger than they were just five years ago, and they have continued to engage in dangerous, high-risk practices that could once again put our economy at risk.”
If Warren’s bill passes, the big banks would have five years to start splitting up. These banks argue that they need to stay large in order to stay competitive. The head of the biggest banks have already spoken up against the bill as well as against this kind of regulation in the past.