Illustration: Sarah Grillo/Axios. Photo: Mark Wilson/Getty Images

Mike Bloomberg makes billions of dollars from Wall Street every year. But his plan to rein in the financial sector is very aggressive. If he were to become president, it would be fought vociferously by the biggest clients of Bloomberg LP, the financial-information company that's the source of the candidate's wealth.

Why it matters: Bloomberg's detailed financial reform policy, released Tuesday, could cost Wall Street trillions of dollars while significantly increasing regulatory scrutiny of financial activities. It's a vision that would not be at all surprising coming from Elizabeth Warren, but that was less expected from an avatar of red-blooded capitalism.

How it works: At the top of Bloomberg's wish list is for banks to hold significantly more capital on their balance sheets. While the policy doesn't specify a number, it does approvingly footnote a paper from the Minneapolis Fed that would end "too big to fail" by raising the so-called "capital requirement" for banks from 13% to as much as 38% for the biggest banks.

  • The Minneapolis Fed plan would force the banks to raise about $2 trillion from the markets, and would raise loan rates by 1.4 percentage points. Add it all up, and the total cost is estimated by the Minneapolis Fed at about 30% of GDP.
  • The Minneapolis Fed calculates the benefits of its plan as higher than the costs, thanks to banking crises happening much less frequently.

Also on Bloomberg's list: A financial transactions tax, affecting mostly the very wealthy, that would raise about $500 billion over 10 years. Every stock, bond, and derivatives transaction would be taxed a tiny amount, helping to discourage socially-useless high-frequency trading.

  • "Speed limits" on the stock exchange that would level the playing field by allowing everybody's orders to be filled at the same time and at the same price.
  • Allowing the Post Office to provide banking services.
  • Tougher banking supervision, including more stringent stress tests from the Fed and a ban on banks using their money to speculate in the markets.
  • Fully nationalize Fannie Mae and Freddie Mac.
  • Beef up the Consumer Financial Protection Bureau.
  • Automatically tie student loan payments to income, and make it easier to discharge student loans in bankruptcy.

The bottom line: Where President Trump deregulated Wall Street, Bloomberg wants to re-regulate it — and he wants to go significantly further than even former President Obama managed with the post-crisis Dodd-Frank legislation.

Go deeper: Michael Bloomberg on the issues, in under 500 words

Go deeper

Updated 29 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 2 p.m. ET: 19,451,097 — Total deaths: 722,835 — Total recoveries — 11,788,665Map.
  2. U.S.: Total confirmed cases as of 2. p.m. ET: 4,968,413 — Total deaths: 161,858 — Total recoveries: 1,623,870 — Total tests: 60,415,558Map.
  3. Public health: Fauci says chances are "not great" that COVID-19 vaccine will be 98% effective.
  4. Science: Indoor air is the next coronavirus frontline.
  5. Schools: How back-to-school is playing out in the South as coronavirus rages on — Princeton, Johns Hopkins, Howard to hold fall classes online.
1 hour ago - World

What's next for Lebanon after the Beirut explosion

Photo: Houssam Shbaro/Anadolu Agency via Getty Images

Beirut residents are still clearing rubble from streets that appear war-torn, days after a blast that shocked the country and horrified the world.

Why it matters: The explosion is likely to accelerate a painful cycle Lebanon was already living through — discontent, economic distress, and emigration.

Wolf Blitzer marks 15 years in "The Situation Room"

Wolf Blitzer on the White House beat in 1993, along with NBC's Brian Williams, CBS' Rita Braver and ABC's Brit Hume. Photo: Paul J. Richards/AFP via Getty Images H

Aug. 8, 2005 — "The Situation Room's" debut on CNN wherein the host first said: "I'm Wolf Blitzer and you're in The Situation Room, where news and information from around the world arrive in one place simultaneously!"

The state of play: When the pandemic took off in the U.S. in March, Blitzer started working 7 days a week for 60+ days, until he took a Sunday off. Then he continued 7 days a week until he took a few days off.