As treasury secretary under President Clinton, Larry Summers worked to repeal the Glass-Steagall Act, dismantling the wall between commercial banks and many investment activities. Elizabeth Warren and many other observers contend the repeal contributed to the 2008 financial collapse and now, as senator, she is spearheading legislation for a new version of Glass-Steagall. “She just tends to see things through Main Street and he sees things through Wall Street,” Sheila Bair, a former FDIC chairwoman, said. “Elizabeth is wary of large institutions and their financial power, and Larry views them as necessary,” she added. “She fears that their market power [risks hurting] the economy.” Summers, a former Harvard president, is seeking appointment as the new head of the Federal Reserve — but Warren is openly backing another contender, Janet Yellen, vice chairwoman of the Federal Reserve.
Posted on: Sat, 10 Aug 2013 15:56:50 +0000
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