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2016

Fact Checker: Bernie Sanders’s claim that Glass-Steagall banned commercial bank loans to ‘shadow banks’

“Secretary Clinton says that Glass-Steagall would not have prevented the financial crisis because shadow banks like AIG and Lehman Brothers, not big commercial banks, were the real culprits. Secretary Clinton is wrong. Shadow banks did gamble recklessly, but where did that money come from? It came from the federally insured bank deposits of big commercial banks — something that would have been banned under the Glass-Steagall Act.”

"— Democratic presidential candidate Sen. Bernie Sanders (Vt.), speech on Wall Street and the economy, Jan. 5, 2016"

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