Bernie Sanders Outlines Plan to Target Wall Street

During a speech at a campaign event on Tuesday, United States presidential hopeful and self-described democratic socialist Bernie Sanders laid out his plan for Wall Street and the financial industry in America. The plan, which has already drawn criticism from more pro-business circles, involves breaking up large banks, separating the commercial banking industry from investment banks, capping credit card interest rates and raising taxes on speculative investment. Mr. Sanders, who represents the populist left wing of American politics, has based his run on similar fiscal policies meant to limit the power of large businesses.

The candidate’s newest policy proposals, given in a New York town hall meeting, included suggestions in areas that he has not previously outlined during his campaign. Among these was a proposal to incorporate banking into the United States Post Office, a government-owned postal carrier. According to Mr. Sanders, his plan for expanding the Post Office’s services into the financial industry would be used to provide affordable credit and banking services to low income individuals and families. The proposal was not accompanied by a comprehensive plan regarding the structure of the financial programs he would incorporate into the postal system or how they would be paid for.

Other policy points discussed by Mr. Sanders in Tuesday’s speech were expansions on his previously stated positions. As he has done several times throughout his campaign so far, Mr. Sanders called once more for the revival of the 1933 Glass-Steagall Act, which mandated the separation of commercial and investment banks. A 15 percent cap on credit card interest rates and a $2 cap on ATM fees, both federally mandated, were also called for.

A tepid recovery from the worldwide financial crisis of 2008 has made such measures widely popular among certain American voting demographics. Others, however, have criticized Mr. Sanders’ proposals, pointing out their potential negative impact on American capital investment, small businesses and economic growth in general. Among the critics of some of the policies suggested by Sanders is fellow Democratic presidential candidate Hillary Clinton. Like Sanders, Mrs. Clinton has suggested higher taxes on speculative investment and increased social spending. Unlike her competitor, however, Clinton has not pursued policies with the goal of breaking up large financial service firms, preferring instead to increase existing regulations as a method of consumer protection. Opposing both is a wide field of Republican candidates, most of whom have voiced their preference of a more free market approach to stimulating American economic growth and competing in global export markets.