Elizabeth Warren challenges Obama to break up 'too-big-to-fail' Wall St banks

Amid speculation that she might run against Hillary Clinton in 2016, firebrand senator attacks regulators for multiple failings

Senator Elizabeth Warren cemented her growing reputation as a darling of the political left on Tuesday with a wide-ranging speech challenging the Obama administration to take on Wall Street and break up its biggest banks.

Amid renewed speculation that she might challenge Hillary Clinton for the 2016 Democratic nomination, Warren appeared at a congressional event to attack regulators for failing to tackle the problem of financial institutions that are "too big to fail".

"We have got to get back to running this country for American families, not for its largest financial institutions," said Warren, who said the issue was an indictment of how little had changed since the 2008 banking crash.

The four biggest Wall Street banks are 30% larger than before the financial crisis, she said, while the five biggest institutions hold more than half the bank assets in the country.

Warren claimed this amounted to an $83bn-a-year taxpayer subsidy for some Wall Street institutions, because they were so large that they could safely rely on a government bailout in the event of a future crisis, and were therefore able to take bigger risks than rivals. She also cited research suggesting the crash had cost up to $14tn, or $120,000 for each American household.

The first-term senator from Massachusetts, who led the congressional taskforce overseeing the bank bailout, has repeatedly denied she has presidential ambitions, but growing talk of her potential candidacy has ensured that even is she doesn't run, she will act as a counter-weight to Wall Street financial backing for Clinton.

In her speech to the Roosevelt Institute and Americans for Financial Reform, Warren did not mention wider political ambitions but focused on proposed legislation launched over the summer with Republican John McCain to break up large banks and build on the 2010 Dodd-Frank reforms.

"Where are we in making sure behemoth institutions on Wall Street can't bring down the economy again? And make wild gambles that suck up all the profits in the good times? And stick the taxpayer with the bill when it goes wrong?" she demanded.

"Three years since Dodd-Frank was passed, the biggest banks are bigger than ever, the risks to the system have grown and the market distortions continue."

She said current regulators do not give "much reason for confidence" and added: "It is time to act: the last thing we should do is wait for another crisis."

Warren's remarks came as the White House confirmed that a relatively unknown Treasury official Timothy Massad would replace former Goldman Sachs banker Gary Gensler as chair of Wall Street derivatives regulator, the Commodities and Futures Trading Commission.

Announcing the appointment, President Obama defended what he called "historic Wall Streets reforms" that had already "put in place smarter, tougher common sense rules of the road."

"The markets have hit record highs and there is no doubt our financial system is more stable," said Obama.

"Tim's a guy that doesn't seek the spotlight," he added.

Article Source : http://www.guardian.co.uk
Azure Global’s vision is to be widely recognized as a reputed firm of financial business advisors, achieving real growth for ambitious companies and to become the first choice for F&A outsourcing for accountancy practices and businesses alike and if u want to Setup ur business in United Kingdom then  its not difficult in this modern age for more info visit our site Azure Global and join us also On Facebook

Larry Summers withdraws name for Federal chairmanship

Barack Obama says he will 'always be grateful' to his former economic aide for his 'tireless work and service'

Barack Obama's hopes of a smooth transition of power at the US Federal Reserve were dealt a significant blow on Sunday night when Larry Summers unexpectedly pulled out of the running to replace Ben Bernanke when he stands down in January.

Summers, a former Treasury secretary under President Clinton, had been frontrunner to take charge of US monetary policy during a crucial phase in the economic recovery but is understood to have been deterred by the prospect of bumpy Senate confirmation hearings.

Despite an impeccable track record as an economist and policymaker, Summers remains widely associated with the period of laissez-faire economic policy-making that led up to the banking crash and his decision to step aside on the eve of the fifth anniversary of the crisis shows how raw the politics remain in Washington.

The White House will issue a report on Monday detailing the steps it has taken to reform Wall Street and repair the economy, but has been criticised by Democrats for failing to tackle the entrenched power of the banks.

Obama paid tribute to the role of Larry Summers in dealing with the aftermath of the financial crisis as director of the White House economic council from January 2009 until November 2010.

"Earlier today, I spoke with Larry Summers and accepted his decision to withdraw his name from consideration for Chairman of the Federal Reserve," Obama said in a statement. "Larry was a critical member of my team as we faced down the worst economic crisis since the Great Depression, and it was in no small part because of his expertise, wisdom, and leadership that we wrestled the economy back to growth and made the kind of progress we are seeing today."

The decision leaves the way open again for Janet Yellen, current vice chairwoman at the Fed, who has been lobbying hard for the job and would be the first woman at the helm of US economic policy.

Summers withdrew from the race in a phone call to Obama on Sunday morning, according to initial reports in the Wall Street Journal.

"I have reluctantly concluded that any possible confirmation process for me would be acrimonious and would not serve the interest of the Federal Reserve, the Administration or, ultimately, the interests of the nation's ongoing economic recovery," Summers wrote in a separate letter.

Obama said in a White House statement issued on Sunday: "I will always be grateful to Larry for his tireless work and service on behalf of his country, and I look forward to continuing to seek his guidance and counsel in the future."

Summers's career was dogged by controversies, notably over his support for deregulation in the 1990s and for comments he made while president of Harvard about women's aptitude in maths and science.

Rumours that Obama was leaning toward nominating Summers over Yellen elicited an unprecedented amount of controversy for a potential nominee to run the US central bank. Four Democratic senators on the Senate Banking Committee were expected to vote against him if nominated by the president.

Summers is the second high-profile potential nominee to withdraw under pressure in Obama's second term. Susan Rice, now Obama's national security adviser, stepped back from consideration to be secretary of state over controversy surrounding her role in explaining the 2012 attack in Benghazi, Libya, which claimed the lives of four US government employees, including the ambassador.

Article Source : http://www.guardian.co.uk

Azure Global’s vision is to be widely recognized as a reputed firm of financial business advisors, achieving real growth for ambitious companies and to become the first choice for F&A outsourcing for accountancy practices and businesses alike and if u want to Setup ur business in United Kingdom then  its not difficult in this modern age for more info visit our site Azure Global and join us also On Facebook