Hillary Clinton vows to go “well beyond” Dodd-Frank

Outlines plan to "rein in" Wall Street in New York Times editorial

Former Secretary of State and democratic presidential candidate Hillary Clinton published an opinion piece in the New York Times today that outlines her plan to "rein in" Wall Street.

Clinton referenced the recent attempt by House Republicans to get a formalized grace period for the TILA-RESPA Integrated Disclosure attached to an appropriations bill and other efforts to defund the Consumer Financial Protection Bureau.

"President Obama and congressional Democrats should do everything they can to stop these efforts. But it’s not enough simply to protect the progress we have made," Clinton wrote. "As president, I would not only veto any legislation that would weaken financial reform, but I would also fight for tough new rules, stronger enforcement and more accountability that go well beyond Dodd-Frank."

Clinton's plan includes:

1. Reining in major financial institutions:

  • Impose a new risk fee on banks with more than $50 billion in assets
  • Ensure the federal government has the authority and tools necessary to "reorganize, downsize and ultimately break up" big banks that are too risky to be managed effectively
  • Strengthen the Volcker Rule
  • Reinstate the rules governing "risky credit swaps and derivates" at taxpayer-backed banks
  • Strengthen oversight of other entities in the financial sector beyond traditional banks, including hedge funds, investment banks and nonbanks.

"We need to tackle excessive risk wherever it lurks, not just in the banks," Clinton wrote.

2. Appointing "tough, independent regulators"

  • Ensure that the Securities and Exchange Commission and the Commodities Futures Trading Commission are independently funded
  • Impose a tax on high-frequency trading
  • Reform stock market rules to ensure equal access to information

3. Holding financial executives "more accountable"

  • Extend the statute of limitations for major financial crimes to 10 years
  • Require financial firms to admit wrongdoing as part of settlements 
  • Increase transparency about terms of settlement and fines actually paid to the government
  • Penalize executives when their firm pays a fine
  • Close the carried interest loophole for fund managers

"Republicans may have decided to forget about the financial crisis that caused so much devastation — but I haven’t," Clinton wrote.

"The proper role of Wall Street is to help Main Street grow and prosper. When our financial sector works the right way, it helps families buy their first homes, entrepreneurs start and grow small businesses and hardworking Americans save for retirement," Clinton said.

"Rather than pursuing the kind of high-stakes speculation that devastated our economy before, Wall Street should focus on building an economy that creates good-paying jobs, rising incomes and sound investments so that more families can achieve the security of a middle-class life," Clinton concludes.

This outline expands on comments Clinton made at the Democratic debate in November.

"Reinstating Glass-Steagall is a part of what very well could help, but it is nowhere near enough. My proposal is tougher, more effective, and more comprehensive because I go after all of Wall Street not just the big banks," Clinton said in that debate.

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