Hillary Clinton will announce a far-reaching plan on Thursday to regulate Wall Street institutions and punish transgressions by executives, according to a preview of the plan released by a campaign aide.
The plan comes after months of Clinton discussing the need to curb risky transactions on Wall Street and hold executives accountable. She has made Wall Street regulation a central theme of her campaign, and promised to go “beyond Dodd-Frank,” the landmark legislation after the Great Recession.
On Tuesday, Clinton said she will “be proposing in the next week, what I think would be the best way to combat Wall Street abuses and to rein-in ‘too big to fail’ banks and other institutions.”
Clinton’s plan, which her campaign will announce in full later on Thursday, would place a tax on high frequency stock trades, which have been criticized for introducing high volatility in the stock market, according to the Clinton aide.
She would also strengthen the Volcker Rule, a key part of the Dodd-Frank Act passed in the immediate aftermath of the financial crisis. The Volcker Rule is meant to prohibit banks form making risky bets with money insured by the federal government. Clinton’s plan would close loopholes in the rule that allow banks taxpayer-insured money invest in risky hedge funds.
She will focus on punishing financial executives for wrongdoing, targeting government fines at senior employees instead of just whole institutions, and ensure that culpable individuals are sent to jail.
“Clinton believes that the best way to deter corporate wrongdoing is to hold individuals accountable for their misconduct,” the aide said. “When people commit crimes on Wall Street, they will be prosecuted and imprisoned.”
Her plan would also increase funding for regulatory agencies like the Securities Exchange Commission and others.
Clinton has already announced plans to slow the revolving door between government and Wall Street and seek to ensure regulators are independent of financial interests.
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