Ryan sides with populists - said banks should be banks, not Hedge FundsSubmitted by kevinkervick on Fri, 08/17/2012 - 08:01
The Republican Party needs to decide if it is the party of the people or the party of investment banks and Hedge Funds. If Ryan stands tall on this issue it will make a big difference with populist/Tea Party voters. More importantly, standing tall on this issue is the right thing to do.
“If you’re a bank and you want to operate like some non-bank entity like a hedge fund, then don’t be a bank. Don’t let banks use their customers’ money to do anything other than traditional banking,” Ryan told his Wisconsin constituents in May, indicating his support for the philosophy behind the Volcker rule.
And asked during a radio interview in November whether Glass-Steagall should be put back in place, the lawmaker answered, “Yeah, I agree with that. … If banks want to make hedge-fund-like returns, then they should go become a hedge fund. But if you want to be a bank, then be a bank.”
The difference in Romney’s and Ryan’s views on how big banks should be regulated highlights a political tension within the GOP between establishment Republicans who are eager to cater to big banks and tea party lawmakers who have tapped into the public’s anger toward the federal bailout of too-big-to-fail institutions.
In an effort to contrast himself from President Barack Obama, whose support from Wall Street donors has dwindled significantly this cycle, Romney has criticized financial regulations implemented by the current administration as being too burdensome on the financial sector.
Ryan, on the other hand, has appealed more to the recent wave of populist, anti-Wall Street sentiment that’s swept across the conservative base.