By Ilana Novick
Source: Read full article at Truthdig
In the runup to the 2020 Democratic presidential primary, Massachusetts Sen. Elizabeth Warren has released her vision for tackling college debt, reducing the cost of child care and reforming immigration, but her latest plan involves the issue that first brought her to national prominence: Wall Street.
In a post published Thursday on Medium, Warren calls for the reinstatement of the Glass-Steagall Act, a Depression-era law separating commercial banks from their investment divisions, thereby preventing banks from using consumer deposits for risky investments.
The law was partially repealed in 1999, which, as a 2015 NPR analysis explained, “opened the floodgates for giant mergers” and allowed commercial banks to engage in such previously banned activities as investments and insurance.
Warren calls her latest proposal part of her “economic patriotism agenda,” which, in addition to reinstating Glass-Steagall, includes plans for postal banking and reining in executive compensation by tying pay to companies’ performance, and new rules for private equity firms, which make money by buying failing companies, restructuring (often by cutting budgets and laying…