Mnuchin: Cut Taxes, Regulations to Boost Growth to 3 Percent

Mnuchin says the report will focus on providing relief to community banks.

The Treasury chief's remarks appear to put to rest a question that has been roiling the industry for months.

"There are aspects of Glass-Steagall that you support, but not breaking up the banks and separating commercial banking from investment banking?" "I've never said we're in favor of breaking up the banks". A call to reinstate the 1933 law was included as part of the official Republican Party platform during the 2016 presidential campaign. "This is like something straight out of George Orwell".

Warren then asked Mnuchin why he has called for a "21st Century" version of the law. "It's actually a complicated question because there are many aspects of it", he added.

A flabbergasted Senator Elizabeth Warren pointed out that Glass-Steagall is best known for the separation of the two types of banks. But he said dismantling banks would sap market liquidity and could pose other economic problems, as well.

WARREN: And it has been for three years now.

"I did tell him that it was our expectation at Treasury that they would pay us the dividend and we hope they continue to do so per the agreement", he said.

"We actually have someone the president has approved that is going through the Federal Bureau of Investigation vetting process", Mnuchin said. "It couldn't be clearer". Mnuchin said it was a way to save money so that they could spend more on the military, but he told Sen.

After the tense exchange, Mnuchin was given a chance to fully explain his position during a round of questioning from Sen.

U.S. Treasury Secretary Steven Mnuchin said China's recent use of foreign currency reserves to prop up the yuan works to the benefit of American workers, and reverses years of intervention that made the country's products cheaper to sell overseas.

WARREN: Yeah, I'm not, because I really have to understand what you've just said.

"We no longer live in a world where the USA can set a corporate tax rate without considering what our worldwide competition looks like", John Stephen, AT&T's chief financial officer, told the House Ways and Means Committee. "We're going to, we're looking at it right now as we speak".

Gary Cohn, the former Goldman Sachs executive who now leads President Donald Trump's National Economic Council, also expressed openness to the idea in a private April meeting with senators.

Despite the lack of specifics, all the comments have caused much consternation at the largest lenders, especially Bank of America Corp., Citigroup Inc. and JPMorgan Chase & Co. All three have substantial footprints in commercial and investment banking, so their business models would be buffetted.

  • Zachary Reyes