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Bloomberg targets Wall Street in new left-leaning proposal
Will Bloomberg’s controversial comments actually impact his campaign?
A ‘Kennedy’ panel discusses the 2020 presidential race and its candidates, including Mike Bloomberg and Bernie Sanders.
Michael Bloomberg rolled out a new proposal Tuesday aimed at overhauling how Wall Street is regulated, including proposing a financial transactions tax and merging mortgage giants Fannie Mae and Freddie Mac.
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The Democratic presidential candidate vowed to toughen the Volcker rule, which prohibits banks from making their own investments with customers' deposits. In 2018, the Trump administration passed a law easing the Obama-era package of rules known as Dodd-Frank, including softening the Volcker rule.
The plan would also strengthen the Consumer Financial Protection Bureau, which was proposed by now Massachusetts Sen. Elizabeth Warren, and expanding its reach to include auto lending and credit reporting. Under the plan, Bloomberg said he would have the Justice Department establish a dedicated team to fight corporate crime and encourage "prosecutors to pursue individuals, not only corporations, for infractions."
Bloomberg called for the introduction of a 0.1 percent tax on all financial transactions, revenue of which would go toward addressing wealthy inequality and other measures, like a speed limit on trading, to "curb predatory behavior."
Doing so would impose a 0.1 percent tax on the purchase of most stocks, bonds and other debt obligations, a proposal that's in line with plans backed by Bloomberg’s 2020 progressive rivals, Warren and Vermont Sen. Bernie Sanders. (Sanders, a self-avowed democratic socialist, went one step further, calling for a 0.5 percent tax on stock trades, 0.1 percent on bond trades and 0.005 percent on derivatives).