Bernie Sanders Wants to Overhaul Wall Street
Bernie Sanders has gone head to head with Hillary Clinton to secure the spot for Democratic Presidential nominee. In his most recent speech, Sanders discussed how he plans to reform Wall Street. In addition to discussing how breaking up banks and restoring the firewall between investment and commercial banking would benefit the nation, Sanders went over who was responsible for the last economic crisis. Below are a few key takeaways from his speech.
It is time to break up big banks
There are plenty of banks on Wall Street that claim they are just too big to fail which gives Wall Street a free insurance policy. Sanders says that he plans to require the secretary of the Treasury department to create a list of banks, shadow banks, and insurance companies that might bring devastation to the economy amid failure. Entities would be broken up within his first year in office to protect the U.S. economy from economic threat, such as a taxpayer bailout.
Financial service fee cap
Back in the 80’s Congress passed a law which required credit unions to place a cap of no more than 15 percent on interest rates for their loans. This has worked because credit unions have not received huge bailouts from taxpayers throughout the country. Sanders wants to extend this 15 percent cap to every lender in the nation, which would be especially good for populous cities that deal with a lot of loans, such as Sacramento, California. Interest rates on credit cards, as well as consumer loans like pink slip loans in Sacramento, would never be greater than 15 percent. In addition, ATM fees would not cost more than $2 because Sanders believes consumers shouldn’t be required to pay a large fee for taking out their own money.
Bank executives prohibited from serving on federal reserve boards
Sanders doesn’t believe any banking executives should be allowed to serve on the Federal Reserve boards. This is largely due to a conflict of interest, in that Wall Street executives and billionaires are the only ones who benefit. To highlight his point, Sanders explained that Jamie Dimon, CEO of JP Morgan Chase, received a $391 billion bailout to his bank, and he just so happened to serve on the board of the Federal Reserve Bank. This also leads to another point, which is prosecuting Wall Street Executives for the 2008 financial crisis. Although Sanders did not pinpoint how this prosecution would take place, he was very adamant about how Wall Street Executives need to pay for almost collapsing the entire U.S. economy back in 2008.
Post office to provide banking services
Sanders said that in low income communities, banking services might not be widely available. If people need cash they go to a payday lender or request a pink slip loan in order to pay for an emergency expense. These types of lenders charge an exuberant interest rate, sometimes over 300 percent. Low income families struggle as it is, and because these loans have such a high interest rate, it puts them in further debt. If the United States Postal Service provided basic banking services, low income communities would benefit because there is a branch in almost every city and small town across the nation.
What do you think of Bernie Sanders and his plans for a Wall Street takeover? Sound off below!