By Russ Phillips
At the Democratic Debate on November 14, 2015 there was discussion about Wall Street and financial institutions as well as redistribution of wealth and other topics. Some have been included in the partial transcript below. Some may wish to refer to the entire transcript. of the complete debate.
Regarding Wall Street reference was made to the Glass-Steagall Banking Act. Other sources pertaining to this:
- What caused the Great Depression?
- “Shadow Banking” At Last Night’s Democratic Debate: Are we Paying Attention?
- Wall Street must work for Main Street
- Why The Glass-Steagall Myth Persists
- Bill Clinton: Glass-Steagall repeal had nothing to do with financial crisis
Former Secretary of State Hillary Clinton;
Former Governor Martin O’Malley (MD);
Senator Bernie Sanders (VT);
Nancy Cordes (CBS News);
Kevin Cooney (CBS News);
John Dickerson (CBS News); and
Kathie Obradovich (The Des Moines Register)[Break in dialogue]DICKERSON: Want to turn now from terrorism to another important issue for many Americans, the financial squeeze on the the middle class. For that, we go to my CBS News Colleague, Nancy Cordes.Nancy?
CORDES: John, thanks so much.
We’ve learned a lot during the course of this campaign about the things that you’d like to do that you say would help the middle class, but we haven’t heard quite as much about who would pick up the tab.
So Secretary Clinton, first to you. You want to cap individuals’ prescription drug costs at $250 a month. You want to make public college debt-free. You want community college to be free altogether. And you want mandatory paid family leave. So who pays for all that? Is it employers? Is it the taxpayers, and which taxpayers?
CLINTON: Well, first of all, it isn’t the middle class. I have made very clear that hardworking, middle-class families need a raise, not a tax increase. In fact, wages adjusted for inflation haven’t risen since the turn of the last century, after my husband’s administration. So we have a lot of work to do to get jobs going again, get incomes rising again. And I have laid out specific plans — you can go to my web site, hillaryclinton.com, and read the details. And I will pay for it by, yes, taxing the wealthy more, closing corporate loopholes, deductions, and other kinds of favorable treatment. And I can do it without raising the debt, without raising taxes on the middle class and making it reasonably manageable within our budget so that we can be fiscally responsible at the same time.
CORDES: But a quick follow-up on that $250-a-month cap. Wouldn’t the pharmaceutical companies and the insurance companies just pass that cost on to the consumers in the form of higher premiums?
CLINTON: Well, we’re going to have to redo the way the prescription drug industry does business. For example, it is outrageous that we don’t have an opportunity for Medicare to negotiate for lower prices. In fact, American consumers pay the highest prices in the world for drugs that we help to be developed through the National Institute of Health and that we then tested through the FDA.
So there’s more to my plan than just the cap. We have to go after price gouging and monopolistic practices and get Medicare the authority to negotiate.
CORDES: Governor O’Malley, you also want to make public college debt-free. You want…
O’MALLEY: That’s right.
CORDES: … states to freeze tuition. You’ve got your own family leave plan. How would you pay for it? In Maryland, you raised the sales tax, you raised the gas tax and you raised taxes on families making over $150,000 a year. Is that the blueprint?
O’MALLEY: Nancy, the blueprint in Maryland that we followed was yes, we did in fact raise the sales tax by a penny and we made our public schools the best public schools in America for five years in a row with that investment. And yes, we did ask everyone — the top 14 percent of earners in our state to pay more in their income tax and we were the only state to go four years in a row without a penny’s increase to college tuitions.
So while other candidates will talk about the things they would like to do, I actually got these things done in a state that defended not only a AAA bond rating, but the highest median income in America. I believe that we pay for many of the things that we need to do again as a nation, investing in the skills of our people, our infrastructure, and research and development and also climate change by the elimination of one big entitlement that we can no longer afford as a people, and that is the entitlement that many of our super wealthiest citizens feel they are entitled to pay — namely, a much lower income tax rate and a lower tax rate on capital gains.
I believe capital gains, for the most part, should be taxed the same way we tax income from hard work, sweat, and toil. And if we do those things, we can be a country that actually can afford debt-free college again.
CORDES: Senator Sanders, you want to make public college free altogether. You want to increase Social Security benefits and you want to spend $1 trillion on infrastructure. So you said that to do some of these things, you’ll impose a tax on top earners. How high would their rate go in a Sanders administration?
SANDERS: Let me put those proposals– and you’re absolutely right. That is what I want to do. That is what is going to have to happen, if we want to revitalize and rebuild the crumbling middle class.
In the last 30 years, there has been a massive redistribution of wealth. And I know that term gets my Republican friends nervous. The problem is, this redistribution has gone in the wrong direction. Trillions of dollars have gone from the middle class and working families to the top one-tenth of one percent who have doubled the percentage of wealth they now own.
Yes, I do believe that we must end corporate loopholes, such that major corporations year after year pay virtually zero in federal income tax, because they’re stashing the money in the Cayman Islands.
Yes, I do believe there must be a tax on Wall Street speculation. We bailed out Wall Street. It’s their time to bail out the middle class, help our kids be able to go to college tuition-free.
So we pay for this by do demanding that the wealthiest people and the largest corporations, who have gotten away with murder for years, start paying their fair share.
CORDES: But let’s get specific. How high would you go? You have said before you would go above 50 percent.
SANDERS: We haven’t come up with an exact number yet, but it will not be as high as the number under Dwight D. Eisenhower, which was 90 percent. But it will be…[laughter]
I’m not that much of a socialist compared to Eisenhower. [applause]
But — but we are going to end the absurdity, as Warren Buffet often remind us.
O’MALLEY: That’s right.
SANDERS: That billionaires pay an effective tax rate lower than nurses or truck drivers. That makes no sense at all. There has to be real tax reform, and the wealthiest and large corporations will pay when I’m president.
O’MALLEY: And may I point out that under Ronald Reagan’s first term, the highest marginal rate was 70 percent. And in talking to a lot of our neighbors who are in that super wealthy, millionaire and billionaire category, a great numbers of them love their country enough to do more again in order to create more opportunity for America’s middle class.
CORDES: Secretary Clinton, Americans say that health care costs and wages are their top financial concerns. And health care deductibles, alone, have risen 67 percent over the past five years.
Is this something that Obamacare was designed to address? And if not, why not?
CLINTON: Well, look, I believe that we’ve made great progress as a country with the Affordable Care Act. We’ve been struggling to get this done since Harry Truman. And it was not only a great accomplishment of the Democratic Party, but of President Obama.
I do think that it’s important to defend it. The Republicans have voted to repeal it nearly 60 times. They would like to rip it up and start all over again, throw our nation back into this really contentious debate that we’ve had about health care for quite some time now.
I want to build on and improve the Affordable Care Act. I would certainly tackle the cost issues, because I think that once the foundation was laid with a system to try to get as many people as possible into it, to end insurance discrimination against people with preexisting conditions or women, for example, that, yes, we were going to have to figure out how to get more competition in the insurance market, how to get the costs of — particularly, prescription drugs, but other out-of-pocket expenses down.
But I think it’s important to understand there’s a significant difference that I have with Senator Sanders about how best to provide quality, affordable health care for everyone. And it’s– it’s a worthy debate. It’s an important one that we should be engaged in.
CORDES: It is — it is a worthy debate. Senator Sanders, a quick response, and then we’ll get into health care again later.
SANDERS: I am on the committee that helped write the Affordable Care Act. We have made some good progress.
Now what we have to take on is the pharmaceutical industry that is ripping off the American people every single day. I am proud that I was the first member of Congress to take Americans over the Canadian border to buy breast cancer drugs for one-tenth the price they were paying in the United States.
But at the end of the day, no doubt, the Affordable Care Act is a step forward. I think we all support it. I believe we’ve got to go further.
I want to end the international embarrassment of the United States of America being the only major country on earth that doesn’t guarantee health care to all people as a right, not a privilege. [applause]
And also — also, what we should be clear about is we end up spending — and I think the secretary knows this — far more per capita on health care than any other major country, and our outcomes, health care outcomes are not necessarily that good.
O’MALLEY: All right, Nancy, I really wish you’d come back to me on this on this one, John…
DICKERSON: All right, I am sorry, Governor, we’re going to have to go, I apologize.
O’MALLEY: Because we have found a way to reduce hospital costs, so whenever we come…
DICKERSON: Governor — Governor, you’re breaking the rules. [laughter]
I’m sorry, we’re going to have to cut for a commercial. We’ll be right back here from Drake University here in Des Moines, Iowa.
O’MALLEY: Thank you.
[Break in dialogue]
OBRADOVICH: Senator Sanders, you’ve actually talked about immigration as being a wage issue in the United States. And I want to actually go directly to the wage issue now.
You called for raising the minimum wage to $15 an hour everywhere in the country. But the President’s former chair of the Council of Economic Advisers, Alan Krueger, has said a national increase of $15 could lead to undesirable and unintended consequences of job loss.
What level of job loss would you consider unacceptable?
SANDERS: Kathie, let me say this. You know, no public policy doesn’t have, in some cases, negative consequences. But at the end of the day, what you have right now are millions of Americans working two or three jobs because their wages that they are earning are just too low.
Real inflation accounted for wages has declined precipitously over the years. So I believe that, in fact, this country needs to move towards a living wage. It is not a radical idea to say that if somebody works 40 hours a week, that person should not be living in poverty. It is not a radical idea to say that a single mom should be earning enough money to take care of her kids. So I believe that over the next few years, not tomorrow, but over the next few years, we have got to move the minimum wage to a living wage, 15 bucks an hour. And I apologize to nobody for that.
OBRADOVICH: You said there are consequences… [applause]
You said there are consequences for — for any policy. Do you think job losses are a consequence that are…
SANDERS: This is what I think — this is what many economists believe that one of the reasons that real unemployment in this country is 10 percent, one of the reasons that African American youth unemployment and underemployment is 51 percent is the average worker in America doesn’t have any disposable income.
You have no disposable income when you are make 10, 12 bucks an hour. When we put money into the hands of working people, they’re going to go out and buy goods, they’re going to buy services and they’re going to create jobs in doing that. Kathie, that is the kind of economy I believe, put money in the hands of working people, raise the minimum wage to 15 buck an hour.
O’MALLEY: Kathie, this was not merely theory in Maryland. We actually did it. Not only were we the first state in the nation to pass a living wage. We were the first to pass a minimum wage. And the U.S. chamber of commerce, which hardly ever says nice things about Democratic governors anywhere, named our state number one for innovation and entrepreneurship.
We defended the highest median income in the country. And so, look, the way that — a stronger middle class is actually the source of economic growth. And if our middle class makes more money, they spend more money, and our whole economy grows. We did it, and it worked, and nobody headed for the hills or left the state because of it.
OBRADOVICH: You’re calling for a $15 an hour wage now but why did you stop at $10.10 in your state?
O’MALLEY: $10.10 was all I could get the state to do by the time I left in my last year. But two of our counties actually went to $12.80 and their county executives, if they were here tonight, would also tell you that it works.
The fact of the matter is, the more our people earn, the more money they spend, and the more our whole economy grows. That’s American capitalism.
SANDERS: Let me just…
CLINTON: Kathie, I think — Kathie the…
SANDERS: Let me just add to that. Just because this is not an esoteric argument. You’re seeing cities like Seattle. You’re seeing cities like San Francisco, cities like Los Angeles doing it, and they are doing it well and workers are able to have more disposable income.
CLINTON: But I do take what Alan Krueger said seriously. He is the foremost expert in our country on the minimum wage, and what its effects are. And the overall message is that it doesn’t result in job loss. However, what Alan Krueger said in the piece you’re referring to is that if we went to $15, there are no international comparisons.
That is why I support a $12 national federal minimum wage. That is what the Democrats in the Senate have put forward as a proposal. But I do believe that is a minimum. And places like Seattle, like Los Angeles, like New York City, they can go higher. It’s what happened in Governor O’Malley’s state. There was a minimum wage at the state level, and some places went higher. I think that is…
O’MALLEY: Didn’t just happen.
CLINTON: I think that is the smartest way to be able to move forward because if you go to $12 it would be the highest historical average we’ve ever had.
O’MALLEY: Come on now. Yeah, but look. It should always be going up. Again, with all do respect to Secretary Clinton…
CLINTON: But you would index it — you would index it to the median wage. Of course, you would. Do the $12 and you would index it. But I…
O’MALLEY: I think we need to stop taking our advice from economists on Wall Street…
CLINTON: He’s not wall street.
O’MALLEY: … And start taking advice…
CLINTON: That’s not fair. He’s a progressive economist.
DICKERSON: You have — you have given me the perfect segue. We are going to talk about Wall Street, but now we’ve got to go do a commercial.
We’re coming to the end of the first hour. But there’s another hour behind it and we’re going to talk about Wall Street so hang with us.
DICKERSON: Good evening again, as we begin the second half of the debate. Joining me in the questioning are the candidates — of the candidates are CBS news congressional correspondent Nancy Cordes, Kevin Cooney of CBS Des Moines affiliate KCCI, and Kathie Obradovich of the Des Moines register.
As those who watched the first hour know, our topic is Wall Street. For those just joining us, welcome. Senator — excuse me, Secretary Clinton, I went to the past there for a moment. Senator Sanders recently said, quote, “People should be suspect of candidates who receive large sums of money from Wall Street and then go out and say ‘Trust me. I’m going to really regulate wall street’.
So you’ve received millions of dollars in contributions and speaking fees from from Wall Street companies. How do you convince voters that you are going to level the playing field when you’re indebted to some of its biggest players?
CLINTON: Well, I think it’s pretty clear that they know that I will. You have two billionaire hedge fund managers who started a super PAC and they’re advertising against me in Iowa as we speak. So they clearly think I’m going to do what I say I will do and you can look at what I did in the Senate.
I did introduce legislation to reign in compensation. I looked at ways that the shareholders would have more control over what was going on in that arena. And specifically said to Wall Street, that what they were doing in the mortgage market was bringing our country down. I’ve laid out a very aggressive plan to reign in Wall Street — not just the big banks.
That’s a part of the problem and I am going right at them. I have a comprehensive, tough plan. But I went further than that. We have to go after what is called the shadow banking industry. Those hedge funds. Look at what happened in ’08, AIG, a big insurance company, Lehman Brothers, an investment bank helped to bring our economy down. So, I want to look at the whole problem and that’s why my proposal is much more comprehensive than anything else that’s been put forth.
DICKERSON: Senator Sanders you said that the donations to Secretary Clinton are compromising. So what did you think of her answer?
SANDERS: Not good enough. [applause]
Here’s the story. I mean, you know, let’s not be naive about it. Why do — why, over her political career has Wall Street been a major — the major campaign contributor to Hillary Clinton? You know, maybe they’re dumb and they don’t know what they’re going to get, but I don’t think so.
Here is the major issue when we talk about Wall Street. It ain’t complicated. You have six financial institutions today that have assets of 56 percent, equivalent to 56 percent of the GDP In America. They issue two-thirds of the credit cards and one-third of the mortgages.
If Teddy Roosevelt, a good Republican, were alive today, you know what he’d say? “Break them up.” Reestablish Glass-Steagall. And Teddy Roosevelt is right. That is the issue. Now I am the only candidate up here that doesn’t have a super PAC. I am not asking Wall Street or the billionaires for money. I will break up these banks. Support community banks and credit unions. That’s the future of banking in America.
DICKERSON: Great follow up because you — and Secretary Clinton, you will get a chance to respond.
You said they know what they’re going to get. What are they going to get?
SANDERS: I have never heard a candidate never, who has received huge amounts of money from oil, from coal, from Wall Street, from the military industrial complex, not one candidate say, oh, these campaign contributions will not influence me. I’m going to be independent. Well, why do they make millions of dollars of campaign contributions? they expect to get something. Everybody knows that.
Once again, I am running a campaign differently than any other candidate. We are relying on small campaign donors, 750,000 of them, 30 bucks a piece. That’s who I’m indebted to.
CLINTON: Well John, wait a minute. Wait a minute, he has basically used his answer to impune my integrity. Let’s be frank here.
SANDERS: No, I have not.
CLINTON: Oh, wait a minute, senator. You know, not only do I have hundreds of thousands of donors, most of them small. And I’m very proud that for the first time a majority of my donors are women, 60 percent. [applause]
So, I represented New York, and I represented New York on 9/11 when we were attacked. Where were we attacked? We were attacked in downtown Manhattan where Wall Street is. I did spend a whole lot of time and effort helping them rebuild. That was good for New York. It was good for the economy and it was a way to rebuke the terrorists who had attacked our country.
So, you know, it’s fine for you to say what you’re going to say, but I looked very carefully at your proposal. Reinstating Glass- Steagall is a part of what very well could help, but it is nowhere near enough. My proposal is tougher, more effective, and more comprehensive because I go after all of Wall Street not just the big banks.
O’MALLEY: John, please, it’s– personal privilege, John.
DICKERSON: Hold on. He was attacked. [applause]
O’MALLEY: John, John,
DICKERSON: Hold on, he was attacked. Glass-Steagall…
SANDERS: So was I, John. Let me get a chance to respond. This issue touches on two broad issues. It’s not just Wall Street. It’s campaign — a corrupt campaign finance system. And it is easy to talk the talk about ending Citizens United, but what I think we need to do is show by example that we are prepared to not rely on large corporations and Wall Street for campaign contributions, and that’s what I’m doing.
In terms of Wall Street, I respectfully disagree with you, madam secretary, in the sense that the issue here is when you have such incredible power and such incredible wealth. When you have Wall Street spending $5 billion over a 10-year period to get — to get deregulated, the only answer they know is break them up, reestablish Glass-Stegall.
DICKERSON: All right. Senator, we have to get Governor O’ Malley in.
Governor, along with your answer, how many Wall Street veterans would you have in your administration?
O’MALLEY: Well, I’ll tell you what, I’ve said this before. I don’t — I believe that we actually need some new economic thinking in the White House. And I would not have Robert Rubin or Larry Summers, with all due respect, Secretary Clinton, to you and to them, back on my council of economic advisers.
DICKERSON: Anyone from Wall Street?
O’MALLEY: They are the architects. Sure, we’ll have an inclusive group but I won’t be taking my orders from Wall Street. And look, let me say this. I put out a proposal. I was on the front lines when people lost their homes, when people lost their jobs. I was on the front lines as a governor fighting against — fighting that battle.
Our economy was wrecked by the big banks of Wall Street. And Secretary Clinton, when you put out your proposal on Wall Street, it was greeted by many as, quote, unquote, “Weak tea”. It is weak tea. It is not what the people expect of our country.
We expect that our president will protect the main street economy from excesses on Wall Street. And that’s why Bernie’s right. We need to reinstate a modern version of Glass-Steagall and we should have done it already. [applause]
CLINTON: Well, you know, governor, I know that when you had a chance to appoint a commissioner for financial regulation, you chose an investment banker in 2010. So for me, it is looking at what works and what we need to do to try to move past what happened in ’08.
And I will go back and say again, AIG was not a big bank. It had to be bailed out and it nearly destroyed us. Lehman Brothers was not a big bank. It was an investment bank. And its bankruptcy and its failure nearly destroyed us. So I’ve said, if the big banks don’t play by the rules, I will break them up.
SANDERS: The big banks–
CLINTON: And I will also go after executives who are responsible for the decisions that have such bad consequences for our country. [applause]
DICKERSON: Hold on.
SANDERS: I don’t know and with all due respect to the secretary, Wall Street played by the rules? Who are we kidding? The business model of Wall Street is fraud. That’s what it is. [applause]
And we have — and let me make this promise. One of the problems we have had — I think all Americans understand this, is whether it’s Republican administrations or Democratic administrations, we have seen Wall Street and Goldman Sachs dominate administrations. Here’s my promise– Wall Street representatives will not be in my cabinet. [applause]
DICKERSON: All right, I want to switch to the — switch to the issue of guns here.
Secretary Clinton, you said that Senator Sanders is not tough enough on guns, but basically he now supports roughly the same things you do. So can tell us what the exact difference is going forward between the two of you on the issue of gun control?
CLINTON: Well, I think that there are different records. I — you know, know that Senator Sanders had a different vote than I did when it came to giving immunity to gun makers and sellers. That was a terrible mistake. It basically gave the gun lobby even more power to intimidate legislators, not just in Washington but across the country.
But just think about this– since we last debated in Las Vegas, nearly 3,000 people have been killed by guns. Twenty-one mass shootings, including one last weekend in Des Moins where three were murdered. Two hundred children have been killed. This is an emergency. There are a lot of things we’ve got to do in our country, reigning in Wall Street is certainly one of them. I agree with that.
That’s why I’ve got such a good plan. But we have to also go after the gun lobby and 92 percent of Americans agree we should have universal background checks. Close the gun show loophole, close the online loophole and… [applause]
DICKERSON: Secretary Clinton, I want to…
CLINTON: I will do everything I can as president to get that accomplished.
DICKERSON: Secretary Clinton, just a quick follow-up. You say that Senator Sanders took a vote that — on immunity that you don’t like. So if he can be tattooed by a single vote and that ruins all future opinions by him on this issue, why then isn’t he right when he says your wrong vote on Iraq tattoos you forever in your judgment?
CLINTON: I — I said I made a mistake on Iraq, and I would love to see Senator Sanders join with some of my colleague in addition the Senate that I see in the audience. Let’s reverse the immunity. Let’s put the gun makers and sellers on notice that they’re not going to get away with it. [applause]
SANDERS: Let’s do more — let’s do more than reverse the immunity. Let’s…
DICKERSON: But was that a mistake, Senator?
SANDERS: Let me hear if there’s any difference between the Secretary and myself. I have voted time and again to — for — for the background check, and I want to see it improved and expanded. I want to see us do away with the gun show loophole.
In 1988, I lost an election because I said we should not have assault weapons on the streets of America. We have to do away with the strawman proposal. We need radical changes in mental health in America so somebody who is suicidal or homicidal can get the emergency care they need. We have — I don’t know that there’s any disagreement here…
O’MALLEY: Oh, yes there is. [laughter
SANDERS: We have got to come forward with a consensus that in fact will work.
DICKERSON: Senator, a mistake or not, your immunity vote? Quickly, before I go to…
SANDERS: There were parts of that bill which agree with parts — I disagree. I am certainly, absolutely, willing to look at that bill again and make sure there’s a stronger bill.
DICKERSON: So not a mistake?
O’MALLEY: John, this is another one of those examples. Like we have a — we have a lot of work to do and we’re the only nation on the planet that buries as many of our people from gun violence as we do.
In my own state, after the children in that Connecticut classroom were gunned down, we passed comprehensive gun safety legislation with background checks, ban on assault weapons, and Senator, I think we do need to repeal that immunity that you granted to the gun industry.
But Secretary Clinton, you’ve been on three sides of this. When you ran in 2000, you said that we needed federal robust regulations. Then, in 2008, you were portraying yourself as Annie Oakley and saying that we don’t need those regulations on the federal level and now you’re coming back around here.
So John, there’s a big difference between leading by polls and leading with principle. We got it done in my state by leading with principal and that’s what we need to do as a party for comprehensive gun safety.
SANDERS: With all — with all due respect… [applause]
I think it’s fair to say that Baltimore is not now one of the safest cities in America, but the issue is…
O’MALLEY: But it’s a lot safer. It’s saved a lot of lives along the way, Senator.
SANDERS: The issue is — I believe, and I believe this honestly, and I don’t know that there’s much difference on guns between us. But I believe coming from a state that has virtually no gun control, I believe that I am in position to reach out to the 60 or 70 percent of the American people who agree with us on those issues. The problem is…
DICKERSON: Hold on.
SANDERS: … people all over this country — not you, Secretary Clinton — are shouting at each other. And what we need to do is bring people together to work on the agreement where there is broad consensus and that’s what I intend to do.
O’MALLEY: I’d like to take a matter of personal privilege here…
CLINTON: But wait, I just want to say this Senator. There is broad consensus, 92 percent in the most recently poll of Americans want gun safety measures…
CLINTON: … and 85 percent of gun owners agree.
CLINTON: We’ve got the consensus, what we’re lacking is political leadership…
CLINTON: … and that’s what you and others can start providing in the Senate. [applause]
SANDERS: Yes, I agree.
DICKERSON: Sorry. I’m going to bring in Nancy Cordes with a question from twitter about this exchange.
CORDES: There was a lot of conversation on twitter about guns, but also about your conversation on campaign finance.
And Secretary Clinton, one of the tweets we saw said this, “I’ve never seen a candidate invoke 9/11 to justify millions of Wall Street donations until now.” The idea being, yes, you were a champion of the community after 9/11, but what does that have to do with taking big donations?
CLINTON: Well, I’m sorry that whoever tweeted that had that impression because I worked closely with New Yorkers after 9/11 for my entire first term to rebuild. So, yes, I did know people. I’ve had a lot of folks give me donations from all kinds of backgrounds say, I don’t agree with you on everything, but I like what you do. I like how you stand up. I’m going to support you, and I think that is absolutely appropriate. [applause]
SANDERS: Well, I — if I might. I think the issue here is — and I applaud Secretary Clinton. She did. She’s the senator from New York. She worked — and many of us supported you — in trying to rebuild that devastation. But at the end of the day, Wall Street today has enormous economic and political power. Their business model is greed and fraud. And for the sake of our economy, they must — the major banks must be broken up.
CORDES: Hold on.
O’MALLEY: John, I think somewhere between…
CORDES: Senator Sanders — I’m sorry. Senator Sanders, but what is it in Secretary Clinton’s record that shows you that she’s been influenced by those donations?
SANDERS: Well, (inaudible) the major issue right now is whether or not we reestablish Glass-Steagall. I led the effort, unfortunately unsuccessfully, against deregulation because I knew when you merge large insurance companies and investment banks and commercial banks it was not going to be good. The issue now is do we break them ?up do we reestablish Glass-Steagall. And Secretary Clinton, unfortunately, is on the wrong side.
CLINTON: Well, I’ll tell you who is on my side. Paul Krugman, the Nobel Prize winning economist, who said my plan for what we should do to reign in Wall Street was more comprehensive and better. Paul Volcker, one of the leading lights of trying to reign in the excesses, has also said he does not support reinstating Glass-Steagall.
So, I mean this may seem like a bit of an arcane discussion. I have nothing against the passion that my two friends here have about reinstating Glass-Steagall. I just don’t think it would get the job done. I’m all about making sure we actually get results for whatever we do. [applause]
DICKERSON: Final word. Final word, Governor O’Malley, before we go to commercial.
O’MALLEY: John, there is not a serious economist who would disagree that the six big banks of Wall Street have taken on so much power and that all of us are still on the hook to bail them out on their bad bets. That’s not capitalism, Secretary Clinton. That’s crony capitalism. That’s a wonderful business model. If you place bad bets, the taxpayers bail you out. But if you place good ones, you pocket it.
Look, I don’t believe there’s the model — there’s lots of good people that work in finance, Secretary Sanders, but Secretary Clinton, we need to step up and we need to protect Main Street from Wall Street and you can’t do that by — by campaigning as the candidate of Wall Street. I am not the candidate of Wall Street…
[Break in dialogue]