Tags: MarketWatch | Weidner | Banks | Election

MarketWatch's Weidner: Outrage at Banks May Turn Into 2016 Election Issue

By    |   Tuesday, 22 July 2014 01:19 PM EDT

Despite the multi-billion-dollar settlements that major banks have reached with the federal government for their behavior leading up to the financial crisis, the public remains upset with them.

And that may turn into a major issues in the 2016 presidential campaign, says MarketWatch writer David Weidner.

"A fresh wave of frustration, mostly from the political left, is mounting," he writes. "And it’s not only pressuring the current administration to keep pressing forward with industry reforms, its threatening to make the conduct of big finance a major issue in 2016."

Editor’s Note: 5 Shocking Reasons the Dow Will Hit 60,000

A new poll by Lake Research Partners shows that 78 percent of voters believe financial rules and enforcement need to be strengthened, Weidner reports. And 61 percent of voters thinks the financial industry is still too powerful and acts recklessly, putting the economy at risk.

The dissatisfaction crosses party lines. The survey showed 84 percent of Democrats, 82 percent of independents and 74 percent of Republicans are concerned about the influence of financial institutions on politicians.

Meanwhile, though the country's biggest banks fared better in their financial-market trading than expected in the second quarter, David Ellison, a portfolio manager at Hennessy Funds, recommends shying away from banks with a heavy reliance on trading, because their profits are so uncertain.

Instead, he prefers regional banks that focus on traditional operations, such as lending, Ellison tells Reuters. "You want to move away from risk and leverage of Wall Street."

Editor’s Note: 5 Shocking Reasons the Dow Will Hit 60,000

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StreetTalk
Despite the multi-billion-dollar settlements that major banks have reached with the federal government for their behavior leading up to the financial crisis, the public remains upset with them.
MarketWatch, Weidner, Banks, Election
279
2014-19-22
Tuesday, 22 July 2014 01:19 PM
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