Treasury Secretary Steven Mnuchin said breaking up the biggest banks would be a “huge mistake,” easing concerns that the Trump administration plans a major revamp of Wall Street.
“We do not support a separation of banks and investment banks,” Mnuchin said at a Senate Banking Committee hearing. “That would have a very significant” impact on financial markets and the economy, he added.
The Treasury chief’s remarks appear to put to rest a question that has been roiling the industry for months. Some administration officials have suggested they were in favor of Congress passing an updated version of the Depression era Glass-Steagall law that split commercial and investment banking, though they have been vague about what that actually meant.
Reviving the law is backed by some of Wall Street’s biggest critics, including Massachusetts Democratic Senator Elizabeth Warren. In a dramatic exchange at Thursday’s hearing, she called Mnuchin’s comments “bizarre” and a contradiction