Bernie Sanders questions if Wall Street is even necessary

Bernie Sanders and Wall Street attack

Bernie Sanders wants to break up big banks and possibly even remove Wall Street from the equation all together.

On Monday, Sanders appeared on CNN’s morning show “New Day” just one day ahead of the New York primaries.

As he has since day one of his campaign, Sanders slammed big banks for being “greedy” and “fraudulent.”

Sanders wants to see power on Wall Street broken up by splitting big institutions like J.P. Morgan Chase and Citigroup into smaller entities.

On Monday morning, Sanders gave CNN’s Chris Cuomo some specifics about his plan. “I think you can break up these large financial institutions,” Sanders said.

“How?” Cuomo asked.

“You can do it through Section 121 of Dodd-Frank. You can do it through my legislation. All you need is the secretary of Treasury to determine which banks, if they fail, will cause systemic damage to our economy. That’s not a hard thing to do,” Sanders said.

A few weeks ago Sanders was criticized for not appearing to be able to give specifics about his plan and the Dodd-Frank Wall Street Reform and Consumer Protection Act.

“I look at it this way — the core of his campaign has been break up the banks, and it didn’t seem in his answers he understood how that would work under Dodd-Frank,” Hillary Clinton said recently.

Now Sanders is quoting specifics about his plan.

Section 121 of Dodd-Frank gives the Federal Reserve power to determine that a big bank poses “a grave threat to the financial stability of the United States.”

Using Dodd-Frank the Fed can take various actions to get banks back on track, including breaking them up by “selling assets.”

Sanders wants to go a step further than Dodd-Frank by supporting a law that was first enacted during the Depression era all the way until 1999 when Congress and President Clinton repealed it.

The Glass-Steagall Banking Act makes banks chose to serve either Wall Street with trading and big business deals or Main Street and mortgages and small business lending.