Hillary Clinton has unveiled her plan to curb Wall Street abuses.
The Democratic presidential front-runner’s proposals include harsher penalties for executives, including forcing them to share fines imposed against their institutions.
Hillary Clinton said there was still too much risk in the financial system:“<<Too big to fail>> is still too big a problem.”
The plan focuses on reining in Wall Street and holding individuals more accountable. If a bank engaged in trading that risked its financial stability, senior managers would not be eligible for bonuses.
Hillary Clinton’s plan included imposing a “risk fee” on big financial institutions to discourage short-term borrowing and encourage them to hold more cash.
She would also impose new taxes on high frequency trading, which has been blamed for market disruptions.
The proposals also strengthen the Volcker rule, which prevents banks from using their own money in certain trades.
Senator Barney Frank helped the Clinton camp draft the proposal. He was the co-author of the Dodd-Frank Act, the most significant Wall Street regulation to emerge since the financial crisis.
However, Hilary Clinton stopped short of calling for the reinstatement of the Glass Steagall Act – a law that separated high street banks from investment banks – saying she prefers “a different way”. Glass Steagall was repealed by former President Bill Clinton during his Presidency.
