WASHINGTON, July 13 (Reuters) - Democratic presidential candidate Hillary Clinton will not propose reinstating a bank break-up law known as the Glass-Steagall Act, said Alan Blinder, an economist who has been advising Clinton’s campaign.
“You’re not going to see Glass-Steagall,” said Blinder, who was named by the Clinton campaign this weekend as one of 10 outside advisers on economic policy development. He said on Monday he spoke to Clinton directly about Glass-Steagall.
The law separated commercial banks from investment banks. Many liberal activists believe that reinstating it and breaking up the biggest U.S. banks would help prevent financial crises. Clinton’s campaign declined to comment on Monday on reinstating Glass-Steagall. (Reporting by Luciana Lopez and Amanda Becker; Writing by Emily Stephenson; Editing by Howard Goller)