A day after White House economic adviser Gary Cohn said he would support efforts to separate Wall Street’s investment banking operations from consumer lending, a group of lawmakers proposed legislation that would do just that.
The legislation, whose sponsors include Senator Elizabeth Warren of Massachusetts, one of Wall Street’s loudest critics, would establish a new version of the Glass-Steagall Act, a Depression-era law that kept bricks-and-mortar lending separate from investment banking for more than six decades.
“Despite the progress since 2008, the biggest banks continue to threaten our economy,” Warren said in a statement. “Reinstating Glass-Steagall has broad bipartisan support, and it’s time to get it done.”
Cohn, a former Goldman Sachs Group Inc. executive, described his position on radically reshaping how Wall Street’s biggest firms operate in a Wednesday meeting with lawmakers, including Warren.
The legislation, also backed by Republican Senator John McCain of Arizona, has been introduced in