Treasury Secretary says Trump has approved new bank regulator

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Mnuchin appeared before the Senate Banking Committee, his first congressional testimony as Treasury secretary, to update lawmakers on domestic and global policy.

"When we're talking about breaking up the banks ... there are just people who think banks are "too big to fail" and should be broken up into smaller banks ..."

Correcting, revising, and reframing Donald Trump's often contradictory and incendiary statements is a key part of the job for anyone in his administration, including his treasury secretary, Steven Mnuchin.

To view the full article, register now. "During the campaign we said we do support a 21 century Glass-Steagall".

Sen. Elizabeth WarrenElizabeth WarrenMnuchin mum as Dems press for answers on tax reform, Dodd-Frank Warren: I would "absolutely" support impeachment if Comey memo is true Poll: Dems in close race for Virginia governor nomination MORE (D-Mass.) asked Mnuchin to clarify his support for a "21st-century" version of the Glass-Steagall Act, a Depression-era law repealed in 1999 separating consumer and investment banking.

MNUCHIN: Again, I'm well aware of what Glass-Steagall was.

Treasury Secretary Steven Mnuchin cautioned that not all businesses now classified as pass-through entities would see their rates slashed to 15 percent under the White House's tax plan - an indication that hedge funds and other high-earning partnerships and limited liability companies might not get major breaks. She said Mnuchin's policy discussion was "like something out of George Orwell".

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WARREN: Just tell me what 21st Century Glass-Steagall means if it doesn't mean breaking apart those two functions.

MNUCHIN: I'm well aware of what Glass-Steagall was.

After a dramatic exchange at Thursday's hearing about breaking up the biggest banks, Warren followed up with questions for Mnuchin on the pass-through rate.

Testifying before Congress on Thursday, Mnuchin tried to walk back a major promise made by Trump on the fly.

"Let me get this straight, you are saying that you are in favor of Glass-Steagall, which breaks apart the two arms of banking.except you don't want to break apart the two arms", Warren continued.

While reviving Glass-Steagall would be a drastic step, lawmakers on both sides of the aisle have argued it might be the best way to prevent banks from becoming so large that they endanger the financial system.

Mnuchin said that before the hearing he had checked that Treasury staff "had fully responded to all the inquiries from you and the committee" and asked Brown to send a note reminding him to deliver the list.

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