February 18, 2020

Bloomberg Nods to Progressives With Wall Street Transaction Tax
(Bloomberg) -- Democratic presidential candidate Michael Bloomberg released a series of financial regulation proposals Tuesday that represent a sharp leftward tack for the Wall Street billionaire, more closely aligning himself with progressives like Bernie Sanders and Elizabeth Warren.The regulations include a 0.1% transactions tax, which is sure to elicit negative reactions from pro-business groups.Bloomberg, who has been criticized by progressives for his close ties to Wall Street, also proposed merging Fannie Mae and Freddie Mac and regulating Wall Street in a way that ensures the financial system is “strong enough to weather crises without harming the broader economy or requiring taxpayer bailouts.”The former New York mayor said he would work with Congress to introduce the tax on all transactions, including stocks, bonds and payments on derivative contracts, and that it would be phased in gradually starting at 0.02%, according to the proposal released Tuesday. He would also support measures such as setting a speed limit to curb harmful types of trading.(Bloomberg is the founder and majority owner of Bloomberg LP, the parent company of Bloomberg News.)Proponents of the tax say it could help curb high-frequency trading and speculative betting, which can lead to chaotic swings in the market. Supporters also point to the significant revenue it could generate: a 0.1% tax could raise nearly $777 billion over a decade, according to the Congressional Budget Office.Cowen & Co. Senior Policy Analyst Jaret Seiberg said in a note to clients on Tuesday that Bloomberg’s proposal seems to be designed to appeal to mainstream Democratic voters.“It is inconceivable that a candidate could win without endorsing many of the ideas in the plan,” Seiberg wrote. “The key with Bloomberg for financials is that he is a pragmatist who understands how financial markets work. We believe that is more important that any specific plan he might endorse.”The plan is likely to elicit criticism from pro-business groups, including the U.S. Chamber of Commerce and the Modern Markets Initiative. The Chamber has said financial transaction taxes would cause mortgage fees to rise and would increase the cost of hedging transactions that farmers, energy firms and transportation companies use to reduce risk. The Modern Markets Initiative has called financial transactions taxes a “tax on retirement.”Bloomberg also called for the reversal of Trump administration rollbacks by toughening Volcker Rule restrictions, setting higher capital requirements at financial firms and strengthening stress tests meant to ensure banks can withstand an economic downturn, according the plan.The proposal calls for Fannie Mae and Freddie Mac, which have been under U.S. control since the 2008 financial crisis, to be merged into a single government-owned entity “to ensure that taxpayers are fully compensated for the risks they are assuming” and that lower-income households are served.The Democratic Party first officially embraced financial transaction taxes in its 2016 party platform, but left room for the size and scope of the levy. Public Citizen, an advocacy group for progressive causes, said middle-income families would pay about $13 a year with a 0.1% tax on trades. The top 10% of income earners would see costs related to their retirement accounts increase an average of $155 a year and owe additional taxes ranging from $58 to $288 annually, according to their estimates.The 2008 financial crisis undermined faith in the financial system, and authorities should be doing everything they can to fix the flaws it revealed, Bloomberg said in his proposal.“Yet the Trump administration is rolling back what safeguards were put in place, and none of the candidates for president is offering a viable alternative,” Bloomberg said in his plan.On Fannie Mae and Freddie Mac, Bloomberg would work with regulators and Congress to come up with a solution. The Trump administration, which has vowed to free Fannie and Freddie but hasn’t ironed out all the details, has pledged to go it alone without the help of Congress if necessary.The plan calls for restoring the Volcker Rule and making enforcement more effective, by focusing on the outcome of speculative trading -- big gains and losses -- rather than trying to discern traders’ intent. Regulators appointed by President Donald Trump are in the process of rolling back the Dodd-Frank Act trading curbs with steps including allowing a smoother path for banks to do business with venture capital funds.Bloomberg’s plan would also restore payday-lending and mandatory arbitration rules at the Consumer Financial Protection Bureau and give the agency jurisdiction over auto lending and credit reporting. It also would create a dedicated corporate crime group at the Justice Department and strengthen protections for whistle blowers.Bloomberg’s progressive rivals have backed aggressive steps targeting Wall Street. Warren has proposed a 21st Century Glass-Steagall Act aimed at breaking up the big banks and called for overhauling the private-equity industry “so that Wall Street executives can’t bleed companies dry and walk away with millions while workers lose their jobs.”(A previous version misspelled Volcker’s name)\--With assistance from Elizabeth Dexheimer.To contact the reporters on this story: Mark Niquette in Columbus at mniquette@bloomberg.net;Laura Davison in Washington at ldavison4@bloomberg.netTo contact the editors responsible for this story: Wendy Benjaminson at wbenjaminson@bloomberg.net, Gregory MottFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Related Stories
Latest News
Top news around the world
Academy Awards

‘Oppenheimer’ Reigns at Oscars With Seven Wins, Including Best Picture and Director

Get the latest news about the 2024 Oscars, including nominations, winners, predictions and red carpet fashion at 96th Academy Awards

Around the World

Politic
Mary Trump 'energized' as uncle 'Donald's campaign spirals into chaos'
Mar 29, 2024
Donald Trump's campaign is in chaos, and his niece says she's energized.Mary Trump, the niece of the former president and a psychologist by trade, has previously been critical of her uncle.On Thursday, she said her uncle's failures are adding up.ALSO READ: A neuroscientist reveals how Trump and Biden's cognitive impairments are different"As the RNC’s fundraising falters and Donald’s campaign spirals into chaos, I am energized!" she said in a Substack post.She then continued:"When Donald dominates the news cycle, it’s hard not to feel overwhelmed. Every bad headline has a negative impact. But then I remember something crucial: There’s usually more to the story than meets the eye. I’m determined to cut through the media noise and share with you all the good that happened this week. These are the headlines we need to remain energized and hopeful that the media largely ignored."Mary Trump goes on to highlight President Joe Biden's recent fundraising hauls."President Biden’s $155 million+ war chest has just received another turbo boost, bringing the total of cash on hand to at least $180 million. (By comparison, between his campaign and the RNC, Donald barely has over $50 million — and continues to drain the accounts to cover his absolutely staggering legal expenses)," she wrote. "This is a development that could significantly increase Biden’s ability to influence the narrative in crucial swing states."This, she says, also tells us a lot about voter excitement for Biden."While critics have expressed doubts about the degree to which the Democratic base is fired up as compared to 2020, today’s $25 million fundraiser, raised with donations ranging from $250 to $500,000, should put any doubts to rest — yes, we are absolutely behind President Biden and Vice President Harris and we’re in this fight until the end," she wrote.Read the full post here.
READ MORE
Celebrity News

> Latest News in Media

Watch It
Ruby Franke’s Husband REVEALS Alleged Rules He Had to Follow at Home | E! News
March 28, 2024
_mU-3lE2QwI
#KenanThompson speaks out following the #QuietonSet documentary. (🎥: Tamron Hall Show) #shorts
March 28, 2024
8AGP-Gfw_Ek
King Charles Shares "Great Sadness" at Missing Royal Appearance | E! News
March 28, 2024
lyizFqf1kQY
Martha Reeves Walk of Fame Ceremony
March 27, 2024
QzyezumEPtQ
Eminem, 50 Cent & Snoop Dogg Present Dr. Dre with a Star on the Walk of Fame
March 19, 2024
4bNLs1hxVp8
Opening Remarks for the Variety Summit October 20th, 2023 Jay Penske
March 18, 2024
c6Z707iLq8E
Montell Jordan Dishes On Young MC Wedding, 'This Is How Date Night' Plans | TMZ
March 28, 2024
G3SMExj-qio
Davina Potratz Says TV Not Helping 'Selling Sunset' Relationship Woes | TMZ
March 28, 2024
D4piy4GNm4k
Logan Paul Rips Graham Bensinger Over Documentary, You Promised Apple TV+ | TMZ Live
March 28, 2024
NiSDpZhZklQ
Prince William pinned royal medal to Spice Girl Mel B’s boobs #shorts
March 28, 2024
O1cQ0UW9pco
Jennifer Garner shares ‘hard’ part of raising her and Ben Affleck’s kids
March 28, 2024
3Q7mZaVUdgc
50 Cent's ex Daphne Joy named as an alleged sex worker in Sean ‘Diddy’ Combs lawsuit #shorts
March 28, 2024
yhLFI8DG9rM
TV Schedule
Late Night Show
Watch the latest shows of U.S. top comedians

Sports

Latest sport results, news, videos, interviews and comments
Latest Events
28
Mar
CHAMPIONS LEAGUE: Playoffs - Women
PSG W - Hacken W
28
Mar
CHAMPIONS LEAGUE: Playoffs - Women
Barcelona W - SK Brann W
27
Mar
CHAMPIONS LEAGUE: Playoffs - Women
Chelsea W - Ajax W
27
Mar
CHAMPIONS LEAGUE: Playoffs - Women
Lyon W - SL Benfica W
17
Mar
SPAIN: La Liga
Atletico Madrid - Barcelona
17
Mar
ENGLAND: FA Cup
Manchester United - Liverpool
17
Mar
ITALY: Serie A
Inter Milan - Napoli
17
Mar
GERMANY: Bundesliga
Borussia Dortmund - Eintracht Frankfurt
17
Mar
ENGLAND: FA Cup
Chelsea - Leicester City
17
Mar
ITALY: Serie A
Roma - Sassuolo
17
Mar
ITALY: Serie A
Verona - AC Milan
17
Mar
ITALY: Serie A
Juventus - Genoa
16
Mar
GERMANY: Bundesliga
Darmstadt - Bayern Munich
16
Mar
ENGLAND: FA Cup
Manchester City - Newcastle United
16
Mar
ENGLAND: Premier League
Fulham - Tottenham Hotspur
16
Mar
SPAIN: La Liga
Osasuna - Real Madrid
13
Mar
CHAMPIONS LEAGUE: 1/8 Final
Atletico Madrid - Inter Milan
12
Mar
CHAMPIONS LEAGUE: 1/8 Final
Barcelona - Napoli
12
Mar
CHAMPIONS LEAGUE: 1/8 Final
Arsenal - Porto
Find us on Instagram
at @feedimo to stay up to date with the latest.
Featured Video You Might Like
zWJ3MxW_HWA L1eLanNeZKg i1XRgbyUtOo -g9Qziqbif8 0vmRhiLHE2U JFCZUoa6MYE UfN5PCF5EUo 2PV55f3-UAg W3y9zuI_F64 -7qCxIccihU pQ9gcOoH9R8 g5MRDEXRk4k
Copyright © 2020 Feedimo. All Rights Reserved.