Clinton would let the big banks fail

by Justin da Rosa28 Oct 2015
Stephen Colbert asked Hillary Clinton if she would let the banks fail if the country were to find itself in a similar recession-era scenario – and her answer may surprise industry professionals.

If Clinton were president, Colbert asked, "and the banks are failing, do we let the banks fail this time?"

Her answer was … shall we say … emphatic.

“Yes,” the former secretary of state replied. “Yes, yes, yes, yes, yes.”

“First of all, under Dodd-Frank, that is what will happen because we now have stress-tests and I’m going to impose a risk fee on the big bank if they engage in risky investor," she continued. "And they have to know, what their shareholders have to know is, yes, they will fail. And if they're too big to fail, then, under my plan and others that have been proposed, they may have to be broken up.”

Clinton has certainly refused to shy away from discussing economic matters.

She recently wrote an op-ed for Bloomberg outlining her plan to prevent the next economic crash, and on Tuesday, while on Colbert’s “Late Show,” Clinton explained the importance of investing in the middle class.

“We have to raise the minimum wage,” Clinton said. “It’s a poverty wage now. It’s disgraceful that people are working full time and can’t get out of poverty. We need to incentivize for profit sharing—we need to continue to rein in the abuses in the financial system and particularly on Wall Street because it did contribute to the problems we had in the economy.”

With files from Bloomberg


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