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AMERICAN BANKER

ISSUES + ACTIONS

2016:
The Candidates,
The Issues
Including the results of a survey of more than 300
banking and financial services executives in which they
prioritize what they hope a new president will address
and handicap the regulatory and political threats to their
business. Plus: Assessments of each of the ten leading
candidates, analyzing their positions on the
most important issues for financial services.

SourceMedia
Research
FOR RELEASE JANUARY 2016

AMERICAN BANKER
ISSUES + ACTIONS

ABOUT THIS REPORT


Issues + Actions reports are produced by the editors of American Banker in
partnership with SourceMedia Research. The reports draw upon proprietary
research that probes the activities, experiences and perceptions of C-suite and
other senior-level banking professionals.
The reports assess how financial services executives are responding to, and
capitalizing on, the fundamental forces that are changing the industry. Each
provides exclusive and authoritative analysis and insight on a topic of vital
interest to the operation of a banking company. The target readership includes
senior executives, line-of-business leaders, marketers and technology
providers seeking deeper, more actionable industry perspectives, whether
as clients or competitors. The reports are available for purchase singly or by
subscription.
This reports opening narrative was written by Rob Blackwell. The candidate
assessments were written by Rob Blackwell and Victoria Finkle, with
contributions from Daniel Hood (taxation), Andrea Davis and Elizabeth
Galentine (health care and employee benefits).
American Banker (AmericanBanker.com) is the leading resource for
commercial banking professionals, supporting a full line of professional
content as well as research, data and conferences. American Banker is a
SourceMedia brand. Other SourceMedia brands include PaymentsSource,
National Mortgage News and CreditUnion Journal.
For more information, contact Director of Research Dana Jackson at
212-803-8329 or Customer Service at 800-221-1809.

NOTE
Reproduction or electronic forwarding of this product is a violation of
federal copyright law. Subscriptions and licenses are available: please call
customer service at 800-221-1809 or email custserv@sourcemedia.com.
SourceMedia, One State Street Plaza, 27th Floor, New York NY 10004.
2016 American Banker and SourceMedia. All rights reserved.

AMERICAN BANKER
ISSUES + ACTIONS

TABLE OF CONTENTS
THE ISSUES
Results from our survey of financial services executives

THE CANDIDATES
Jeb Bush 

Ben Carson

12

Chris Christie

16

Hillary Clinton

19

Ted Cruz

23

Carly Fiorina

26

John Kasich

29

Marco Rubio

32

Bernie Sanders

35

Donald Trump

38

2016 American Banker and SourceMedia. All rights reserved.

AMERICAN BANKER
ISSUES + ACTIONS

Financial Services
Perspectives on
The Presidential
Election
It is by now a universally acknowledged truth that the 2016 presidential
election has been the most volatile and unpredictable in recent memory.
By their own account, financial services executives care deeply about its
outcome, but uncertain about which outcome to hope for. Many of the
candidates have embraced populist ideas, with even Jeb Bush backing higher
capital requirements for banks while Sen. Bernie Sanders of Vermont has
proposed far more radical plans. Yet given the sheer number of candidates
still in the race, it can be confusing to compare and contrast where they stand.
In this research report, American Banker sets out to accomplish two goals:
to get a deeper understanding of the issues financial institutions care about
during this election and to provide a detailed, comparison-ready dossier that
identifies and explains where each significant candidate stands on banking,
tax and other financial issues.
To gauge the first, SourceMedia Research conducted an online survey of
more than 300 bankers in November and December. The survey asks bankers
to prioritize what they are hoping a new president will address as well as
handicap the greatest regulatory and political threats to their business.

Figure 1: What are your institution's


total assets?
45
40
35
30
25
20
15
10
5
0

Less than $100 million $1 billion to More than


$100 million to $1 billion $10 billion $10 billion

The results were unambiguous. More than 90% percent said the presidential
election was important to the industry, with 41% assigning it extreme
importance and another 51% calling it somewhat important. Only one
respondent declared the race completely unimportant. (Figure 2)
While bankers agree the presidential race is critical, they view control of the
House and Senate matter as even more important to their agenda. Nearly twothirds of respondents said the Congressional races are more consequential to
the banking industry, compared to about a quarter who saw the presidential
election that way. (Figure 3)

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AMERICAN BANKER
ISSUES + ACTIONS

The Candidates
The following section presents detailed profiles analyzing the campaigns of
the ten major candidates, including their policies, positions, and interactions
with the financial industry. For each candidate, we assessed issues in
banking, taxation, and health care and employee benefits. Specific issues
include: Too Big to Fail, Regulatory Relief, the CFPB, Crony Capitalism,
Fed Policy, Individual Income Tax, Capital Gains, Corporate Tax, Estate
Tax, and the Affordable Care Act. For online users, this section also contains
other relevant data and useful links to related content.

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AMERICAN BANKER
ISSUES + ACTIONS

Hillary Clinton

The former Secretary of State and former New York senator


is well-known to most major players in the political world,
and though she has billed herself as a progressive Democrat,
many businesses, including banks and others, view her as
preferable to her more left-wing opponents. Her views tend
to reflect center or slightly left of center thinking, with Clinton
eschewing radical ideas for a more firm-and-steady approach.
Following are her views on a range of subjects.

REGULATION AND FINANCIAL SERVICES REFORM


Too Big to Fail:
In contrast to her Democratic competitors, Hillary Clinton has tried to steer
a middle path when it comes to Wall Street reform. While Bernie Sanders
and Martin OMalley call for breaking up the big banks, Clinton has instead
focused on nonbanks, or shadow banks, that she says helped caused the
financial crisis, and unlike financial institutions, were not reformed by the
Dodd-Frank Act.
In a speech in October, Clinton gave her clearest views to date on her vision
of reform (She reiterated her views in a December op-ed). Key points include:
Imposing a risk fee on all banks with more than $50 billion of assets, with
higher charges for institutions that rely heavily on short-term funding.
Combating too big to jail by increasing the statute of limitations for
financial crimes, enhancing whistle-blower protections and providing
more funding to the Justice Department and Securities and Exchange
Commission
Eliminating what Clinton calls a loophole in the Volcker Rule that allows
banks to invest up to 3% of their capital in private equity and hedge funds
Giving bank regulators more power to break up or restructure the big banks
Strengthening oversight of the shadow banking sector, including hedge
funds, investment banks and other nonbanks
Imposing a tax on the high-frequency trading, which Clinton says makes
our markets less stable and less fair.
Regulatory Relief:
Clinton stated in her October speech that she favored easing the burden on
community banks, though shes said she opposes major changes to the DoddFrank Act.

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Crony Capitalism:
Clinton has backed a plan by Sen. Tammy Baldwin, D-Wisc. that would
restrict the the revolving door between government and the private sector.
The Financial Services Conflict of Interest Act would ban government
workers from accepting bonuses, known as "golden parachutes," from
their former corporate employers; expand a cooling-off period on lobbying
government agencies after leaving the public sector to two years; and require
financial regulators to recuse themselves from actions that would benefit a
former employer or client for two years.
The former New York senator has also been criticized for being a recipient
of significant Wall Street contributions, as well as the speaking fees she has
earned for giving speeches to firms like Goldman Sachs. During the primary
debate on Jan. 17, Sanders claimed Clinton had earned more than $600,000 in
speaking fees from Goldman.
Clinton did not rebut the claim, but has generally deflected criticism by saying
she has won over many diverse fans, including some on Wall Street, working
in downtown Manhattan to help with rebuilding efforts after the 9/11 attacks.
CFPB:
Clinton has been a fierce advocate for the Consumer Financial Protection
Bureau, opposing any changes to its structure or its funding. In October, she
wrote a letter to House Democrats urging them to vote against a bill that would
have replaced the agencys single director with a five-person commission.
If this bill passes, consumers primary advocate in the U.S. government
would have to fight with one hand tied behind its back, Clinton wrote.
Perhaps thats exactly what Republicans and their corporate allies want. This
legislation is just the latest salvo in the relentless Republican war to defund
and defang the CFPB.
The letter makes it clear that if elected president, Clinton will oppose any
significant changes to the CFPB.
Fed Policy:
Clinton has not spoken in depth about monetary policy.

TAX PROPOSALS
Although Clinton has not announced a comprehensive tax plan similar to the
reform proposals of some of her would-be Republican opponents, she has

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20

AMERICAN BANKER
ISSUES + ACTIONS

spelled out a change to the way capital gains would be taxed for those earning
$400,000 or more a year.
Her plan has won praise from progressive economists for its effect on
curtailing tax subsidies for the wealthy and encouraging investors to hold
investments for longer terms, but those who oppose it say it might encourage
investors to divest their holding earlier than they would otherwise.
Individual income tax: No position taken.
Capital gains: To counter what Clinton calls quarterly capitalism, she
has proposed revision to the capital gains tax: For top earners ($400,000
or more per year) the top rate on capital gains would remain at 39.6%
for a second year. The rate would then be lowered on a sliding scale over
the next four years. Investments held for six years would be taxed at the
current favorable capital gains rate. Clinton has also said she supports
raising taxes on carried interest.
Corporate tax: No position taken.
Estate tax: No position taken. She is reported to have used qualified
personal residence trusts as a tax planning/avoidance mechanism.

HEALTH CARE AND EMPLOYEE BENEFITS


Clinton has laid out a concrete position on the Affordable Care Act, often
known as Obamacare, saying weve got to defend the law from Republican
attacks. She has also advocated for:
Paid family leave. We can design a system and pay for it that does not
put the burden on small business, Clinton said at the first Democratic
presidential debate in October
Reducing out-of-pocket costs by lowering co-pays, deductibles and
prescription drug costs
Rewarding value-based health care and continuing delivery system
reforms begun by the Affordable Care Act
Repealing the ACAs so-called Cadillac tax provision, a tax on the most
expensive benefit plans designed to raise money for ACA initiatives.
Opposes reducing annual cost-of-living adjustments for Social Security
and privatizing the program. Clinton favors reducing how much the
benefits drops when a spouse dies. She also supports giving social security

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benefit credits to a person out of the paid workforce who is acting as a


caregiver.
Opposes raising the retirement age.
Guaranteed paid leave.
Increasing the federal minimum wage. Shes advocated for state and local
efforts to go above the federal floor.

TOP BANKING DONORS


MORGAN STANLEY $133,424
JPMORGAN CHASE $94,103
BANK OF AMERICA $89,559
GOLDMAN SACHS $67,350
BLACKSTONE GROUP $56,700
CITIGROUP INC $51,450
CARLYLE GROUP $51,300

Key Links:
Clinton Defends Wall Street Backing at Second Debate
Who Are Bankers Backing for President?
What Big Banks Are Giving to Presidential Candidates

WELLS FARGO $49,660


UBS AG $43,478
CENTERVIEW PARTNERS $37,820
Source: Center for Responsive Politics. Data as of
Sept. 30, 2015

Four Takeaways for Banks from the First Democratic Presidential Debate
Democrats Clash Over TBTF at First Presidential Debate
Clinton Offers Incremental Vision of Wall Street Reform
An Annotated Guide to Clinton's Wall Street Reform Plan

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22

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ISSUES + ACTIONS

Ted Cruz

The senator from Texas, elected in 2012, has quickly made


himself a household name as a staunch Tea Party conservative. The Republican lawmaker has vowed to abolish the
Internal Revenue Service, the Consumer Financial Protection
Bureau and other government agencies in the name of more
limited government.
Hes currently a solid contender in primary polls. Following
are his views on critical issues:

REGULATION AND FINANCIAL SERVICES REFORM


Too Big to Fail:
During the fourth Republican debate in November, Cruz said he would
absolutely not bail out a failing bank, should another crisis arise.
Still, he noted that the Federal Reserve does have a role in propping up the
system as a lender of last resort.
That's what central banks do. So if you have a run on the bank, the Fed can
serve as a lender of last resort, but it's not a bailout. It is a loan at higher interest
rates. That's how central banks have worked, he said.
Regulatory Relief:
Cruz has been highly critical of the Dodd-Frank Act, warning as many GOP
candidates have that the law is wiping out small banks.
CFPB:
Cruz introduced legislation to abolish the four-year-old CFPB in July 2015,
arguing that the agency has failed to protect consumers or rein in the largest
institutions.
The agency continues to grow in power and magnitude without any
accountability to Congress and the people, he said at the time. The only way
to stop this runaway agency is by eliminating it altogether.
Crony Capitalism:
Despite his wife's position as a managing director at Goldman Sachs, Cruz
has knocked Wall Street, citing concerns about the symbiotic relationship
between big business and government.
Goldman is one of the biggest banks on Wall Street, and my criticism with

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Washington is they engage in crony capitalism, he said. They give favors to


Wall Street and Big Business, and thats why Ive been an outspoken opponent
of crony capitalism, taking on leaders in both parties, he told Bloomberg in
March.
He added at the November debate: The biggest lie in all of Washington and in
all of politics is that Republicans are the party of the rich. The truth is, the rich
do great with big government. They get in bed with big government. The big
banks get bigger and bigger and bigger under Dodd-Frank and community
banks are going out of business.
CFPB:
Cruz introduced legislation in July 2015 to abolish the four-year-old CFPB in
July 2015, arguing that the agency has failed to protect consumers or rein in
the largest institutions.
"The agency continues to grow in power and magnitude without any
accountability to Congress and the people," he said at the time. "The only way
to stop this runaway agency is by eliminating it altogether."
Fed Policy:
Cruz has emerged in Congress as a vigorous critic of the Federal Reserve. The
Texas senator teamed up with Sen. Rand Paul another presidential contender
earlier this year to introduce legislation to audit the Fed and give Congress
more oversight over monetary policy. Both lawmakers criticized the central
bank during the third primary debate in late October.
I think the Fed should get out of the business of trying to juice our economy
and simply be focused on sound money and monetary stability, ideally tied to
gold, Cruz said that night.

TAX PROPOSALS
Individual income tax: Cruzs plan would abolish the IRS and replace the Tax
Code with a simple flat tax, with the current seven rates of personal income
tax collapsed into a single rate of 10%. The first $36,000 of income would
be tax-free for a family of four. The Child Tax Credit would remain, and an
expanded Earned Income Tax Credit would undergo anti-fraud and promarriage reforms. Charitable contribution deductions and mortgage interest
deductions would remain.

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Capital gains: Capital gains would need no special treatment under the flat
tax proposal.

TOP BANKING DONORS


WOODFOREST FINANCIAL GROUP $85,050

Corporate tax: Replaced by a business flat tax at a single 16% rate. The payroll
tax system would be abolished while maintaining full funding for Social
Security and Medicare.

GOLDMAN SACHS $43,575

Estate tax: Cruz would eliminate the estate tax.

SIGMABLEYZER $32,400

AVALON ADVISORS $33,400


AVISTA CAPITAL HOLDINGS $32,400
TEZA TECHNOLOGIES $32,400

HEALTH CARE AND EMPLOYEE BENEFITS


Ted Cruz has been the most vocal on repealing the Affordable Care Act,
authoring the Obamacare Repeal Act as his first piece of legislation.
Additionally, Cruz has:
Sued the federal government to strike down portions of the Medicare
Prescription Drug program as an unconstitutional intrusion in the
sovereign authority of the states

HICKS HOLDINGS $21,600


JW CHILDS ASSOCIATES $21,600
VELITE BENCHMARK
CAPITAL MANAGEMENT

$21,600

EDGEWOOD MANAGEMENT $16,200


Source: Center for Responsive Politics. Data as of
Sept. 30, 2015

Favored gradually increasing the retirement age


Proposed changing the rate of increase in benefits so that it matches
inflation, rather than exceeding inflation
Called for allowing younger workers to keep a portion of their tax
payments in a personal account that they own and control, which can
grow at market rates
Cruz is been staunchly opposed to raising the minimum wage, which he
says will stifle hiring, particularly among certain populations.
Key Links
GOP Candidates Clash Over Bank Bailouts, 'Too Big to Fail'
Why GOP Debate Was a Bad Sign for Big Banks
Who Are Bankers Backing for President?
GOP Contenders Slam Government's Role in Banking
Why GOP Candidates Are Silent on Banking Ahead of 2016

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25

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ISSUES + ACTIONS

Bernie Sanders

The senator from Vermont and avowed Democratic socialist


has generated excitement among young voters and may be
forcing Clinton to the left on certain issues.
In contrast to Clintons campaign and those of her GOP rivals,
Sanders has made financial issues one of his top priorities.
Heres how he stands on the issues:

REGULATION AND FINANCIAL SERVICES REFORM


Too Big to Fail:
Sanders has been very vocal in his desire to break up the biggest banks in
the country. On his website he targets the six largest banks, noting that their
assets equal 60% of the country's gross domestic product, they issue more
than two-thirds of all credit cards and they control more than 35% of the
country's mortgages. In a speech on Jan. 5, Sanders provided more details of
what he plans to do.
Sanders Wall Street reform plan calls for:
Having the Treasury secretary draw up a list of "too big to fail" institutions
and using the Dodd-Frank Act's Section 121 to break them up within a
year.
Restoring the Depression-era Glass-Steagall Act, which separated banking
from other activities, including securities and insurance. Sanders sees the
repeal of that law in 1999 as a key cause of the financial crisis.
Taxing high-speed trading and other forms of Wall Street speculation.
The money raised would be used to help provide college tuition to students.
Banning banks and other firms from providing big bonuses to executives
who take senior-level government jobs.
Capping credit card and other consumer loan interest rates at 15% and
ATM fees at $2
Turning the credit rating agencies into nonprofits in order to ensure their
independence
Allowing U.S. post offices to offer banking products
Regulatory Relief
Sanders has not substantively address regulatory relief for community banks.
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ISSUES + ACTIONS

Crony Capitalism
Sanders attacked Clinton at the second Democratic debate in November over
her significant funding from banking industry employees.
Candidates who receive "huge amounts of money" from big industries often
say, " 'These campaign contributions will not influence me. I'm going to be
independent,' " Sanders said, calling Clinton's defense "not good enough."
Sanders continued his attacks during the Jan. 17 debate with Clinton,
criticizing the speaking fees she has received from Goldman Sachs, among
others.
The Vermont lawmaker held up Goldman as what's wrong with American
politics, noting that two recent Treasury secretaries Robert Rubin and
Henry Paulson came from the firm. "If elected president, Goldman Sachs is
not going to bring forth a secretary of treasury for a Sanders administration,"
Sanders said.
CFPB
Sanders has not talked in depth about the CFPB.
Fed Policy
Sanders has heavily criticized the Federal Reserve, arguing it has been
effectively captured by the banks. In his January speech, Sanders called for
board members of the 12 regional Fed banks to be nominated by the U.S.
president and confirmed by the Senate. He has said that no big-bank executive
should serve on the board of the main Federal Reserve or its regional banks.
Sanders has also sharply criticized the transparency of the Fed, supporting
calls by conservatives to allow the Government Accountability Office to
audit the central bank annually. He has also said that full, public transcripts
from Federal Open Market Committee meetings should be released after
six months, rather than after five years. "If we had made this reform in 2004,
the American people would have learned about the housing bubble well in
advance of the financial crisis," Sanders said in a New York Times op-ed.
Sanders has also criticized the interest the Fed pays on bank reserves,
suggesting it is a big bank giveaway. It "keeps money out of the economy and
parked at the Fed," he said.
Instead, he said the Fed should charge banks a fee "that could be used to
provide affordable loans to small businesses to create hundreds of thousands
of jobs."

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AMERICAN BANKER
ISSUES + ACTIONS

TAX PROPOSALS

TOP FINANCIAL DONORS:

Sanders various proposals have given would-be Republican candidates a


target to aim at, in part because he has offered a number of specifics on plans
that would aim to decrease income inequality. He is also currently backing
legislation that would use a new payroll tax to fund 12 weeks of paid family
and medical leave for all U.S. employees.

1) BANK OF AMERICA $4,950

Individual income tax: Sanders has said he would expand Social Security by
lifting the cap on taxable income above $250,000.

6) FALCONWOOD CORP $2,700

Capital gains: Sanders would increase the Net Investment Income tax to 10%.
He has stated that he would raise taxes on dividends and capital gains.
Corporate tax: No official position taken, though his Web site says he would
stop corporations from shifting profits overseas to avoid U.S. income taxes.
Estate tax: Sanders would increase the top estate tax rate to 65%, and lower
the estate tax exclusion to $3.5 million.

2) WELLS FARGO $4,912


3) CITIGROUP $3,221
4) SCOPIA CAPITAL $2,798
5) COMMERCE CO $2,700
7) COMMODITY TRADING $2,550
8) JPMORGAN CHASE $2,160
9) BANK OF AMERICA? $2,119
10) UBS AG $1,579
11) ZIONS BANCORP. $1,505
Source: Center for Responsive Politics. Data as of
Sept. 30, 2015

HEALTH CARE AND EMPLOYEE BENEFITS


Supports Medicaid expansion
Supports a single-payer health system
Supports lifting the taxable income retirement cap
Opposes raising the retirement age
Supports a national minimum wage of $15 an hour
Introduced the Workplace Democracy Act to strengthen the role of
unions and the voices of working people on the job
Links:
Clinton Defends Wall Street Backing at Second Debate
Even Bernie Sanders May Underestimate Some Banks Size
Postal Banking Is a Great Idea: Bernie Sanders
Four Takeaways for Banks from the First Democratic Presidential Debate
Democrats Clash Over TBTF at First Presidential Debate
Why a Presidential Long Shot Will Still Give Banks Fits

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ISSUES + ACTIONS

Donald Trump

The New York real estate mogul has had a major impact on
the presidential race because of his unconventional style and
controversial views.
Unlike traditional campaigns, Trump has eschewed providing
much in the way of detailed policy objectives except in a few
areas, like immigration. In addition, he has one of the more
comprehensive tax proposals among the candidates.
Following are his views on key issues.

REGULATION AND FINANCIAL SERVICES REFORM


Too Big to Fail:
Trump has said little so far on this issue.
Regulatory Relief:
Trump has not provided many specifics, but he has repeatedly said that he
would seek to repeal the Dodd-Frank Act.
"It's terrible," Trump told The Hill newspaper on Oct. 14. "Under DoddFrank, the regulators are running the banks. The bankers are petrified of the
regulators. And the problem is that the banks aren't loaning money to people
who will create jobs."
He made a similar argument a week later in an interview on Fox Business,
saying he disagreed with some progressives calls to break up the big banks.
Still, in an earlier interview with Time magazine, Trump said there "are
aspects of " Dodd-Frank "you could leave," though he did not specify which
ones. When asked specifically about the Volcker Rule, he praised former Fed
Chairman Paul Volcker, and suggested he approved of the rule.
"Well, I'm not sure if he likes it, but ... if he's happy, I'm happy," Trump said.
"He was a terrific guy. I've met him a few times. And I thought he was terrific.
But I think his policy and his demeanor there was something very solid
about him."
Crony Capitalism:
Trump has been consistently critical of the role of campaign donations in
shaping politics, arguing that politicians are effectively "bought" by the firms
that give them money. Indeed, part of Trump's appeal to voters is that he does
not accept campaign donations and presents himself as above the fray.
In particular, Trump has criticized his fellow candidates, including Hillary

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ISSUES + ACTIONS

Clinton and Ted Cruz, for accepting money from firms like Goldman Sachs.
During the debate on Jan. 17, Trump noted that Cruz had not properly
disclosed a loan from Goldman (where Cruz' wife works). Campaigning in
Iowa later the same week, Trump savaged Cruz, his closest competitor in the
Republican race, over the issue, arguing Cruz hid the loan.
"He didn't do it purposely because what he wanted to do is say, 'I will protect
you from Goldman Sachs, I will protect you from CitiBank... and I'm going
to protect you from these banks.' And then he's borrowing from the banks,"
said Trump. "And, by the way, he's got personal guarantees, and he's got
low-interest loans, all low-interest. And now he's going to go after Goldman
Sachs? It doesn't work that way. Goldman Sachs owns him. Remember that,
folks: They own him."
Trump has also been critical of capital gains tax breaks for hedge funds and
other securities firms.
"They're paying nothing and it's ridiculous. I want to save the middle class," he
said in August on CBS's "Face the Nation." "The hedge fund guys didn't build
this country. These are guys that shift paper around and they get lucky."
CFPB:
Trump has not discussed his plans for the CFPB to date.
Fed policy:
Trump has sharply criticized current Fed Chairman Janet Yellen. Echoing
criticism from other GOP presidential candidates, Trump has accused Yellen
of purposely keeping interest rates low for political reasons.
Janet Yellen is highly political and shes not raising rates for a very specific
reason, Trump said in a speech on Nov. 3. Because Obama told her not to
because he wants to be out playing golf and other things a year from now
and he wants to be doing other things and doesn't want to see a bubble burst
during his administration."
He has said Yellen should have raised rates earlier, but that when she does so
in the near future a lot of bad things are going to happen.

TAX PROPOSALS
Of all the candidates, Trump has one of the most detailed tax proposals.
Individual income tax: Trumps plan would consolidate seven brackets
into four of 0%, 10%, 20%, and 25%. The top rate would be lowered from

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39

AMERICAN BANKER
ISSUES + ACTIONS

39.6% to 25%. He would increase the standard deduction to $25,000 for


singles and $50,000 for married filing jointly; the Alternative Minimum
Tax and Net investment Income Tax would be eliminated. Carried interest
would be taxed as ordinary income.
Capital gains: The top rate for long-term capital gains and qualified
dividends would be 20%. Carried interest would no longer receive capital
gains treatment.
Corporate income tax: His plan would reduce the rate from 35% to 15%.
According to Trump, the lower rate would make corporate inversions
unnecessary. The Trump plan ends tax deferral on overseas corporate
income while enacting a one-time deemed repatriation tax of 10% on
all foreign profits currently deferred. It would tax pass-through entities
(LLCs, S corporations, sole proprietorships, and partnerships) at 15%,
the same rate as corporations would pay. It also eliminates the corporate
alternative minimum tax.
Estate tax: Trump would eliminate the estate tax.

HEALTH CARE AND EMPLOYEE BENEFITS


Donald Trump has called the Affordable Care Act a complete disaster and
said it needs to be repealed and replaced. What I'd like to see is a private
system without the artificial lines around every state, he told Fox News. His
other specific recommendations include:
Letting Americans purchase health care across state lines
Creating "a universal 'market-based' plan that would offer a range of
choices," according to a Trump spokesperson. "Mr. Trump will be
proposing a health plan that will return authority to the states and operate
under free-market principles. Mr. Trump's plan will provide choice to the
buyer, provide individual tax relief for health insurance and keep plans
portable and affordable. The plan will break the health insurance company
monopolies and allow individuals to buy across state lines."
Suggesting that rich taxpayers should sacrifice the benefits of Social
Security for the good of the country
Opposed massive cuts to Social Security, Medicare and Medicaid. Every
Republican wants to do a big number on Social Security, they want to do it
on Medicare, they want to do it on Medicaid. And we cant do that. And its

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not fair to the people that have been paying in for years and now all of the
sudden they want to be cut, he told a GOP summit in April.
Supports a low minimum wage. Having a low minimum wage is not a bad
thing for this country, he said.

TOP FINANCIAL DONORS:


TIGER GLOBAL MANAGEMENT $2,700
JPMORGAN CHASE & CO $1,000
GOLDMAN SACHS $534
BANK OF AMERICA $500

Links:

RAYMOND JAMES FINANCIAL $500


WELLS FARGO $460

GOP Candidates Clash Over Bank Bailouts, 'Too Big to Fail'

BLACKROCK INC $440

Why GOP Debate Was a Bad Sign for Big Banks

DEUTSCHE BANK AG

Who Are Bankers Backing for President?


GOP Contenders Slam Government's Role in Banking
Why GOP Candidates Are Silent on Banking Ahead of 2016

2016 American Banker and SourceMedia. All rights reserved.

$250

AMERIPRISE FINANCIAL $250


SHANER INVESTMENTS $230
Source: Center for Responsive Politics. Data as of
Sept. 30, 2015

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