Clinton courts left with promise to break up risky banks

U.S. Democratic presidential candidate Hillary Clinton speaks during a community forum campaign event at Cornell College in Mt Vernon, IowaBy John McCrank and Amanda Becker NEW YORK/WASHINGTON (Reuters) – U.S. Democratic presidential hopeful Hillary Clinton on Thursday called for the breakup of large banks that take excessive risks as part of a sweeping plan to curb what she says are Wall Street abuses. “It’s not pure size, it’s bad management, excessive risk and things like that, lack of controls,” said Alan Blinder, a Princeton economist who helped formulate the plans. “Now the truth of the size question is that the bigger you get the harder it is to do those things effectively.” Clinton has been under pressure to join progressives within the Democratic Party calling for the government to break up banks deemed “too-big-to-fail.” Both U.S. Senator Elizabeth Warren, the party’s most outspoken critic of Wall Street, and U.S. Senator Bernie Sanders, Clinton’s leading challenger for the Democratic nomination, have embraced such an approach.

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