Gary Cohn supports splitting lending and investment banks - Bloomberg

(Reuters) - White House economic adviser Gary Cohn said in a private meeting with lawmakers that he supports a policy that could revamp Wall Street's biggest firms by separating their consumer-lending businesses from their investment banks, Bloomberg reported, citing sources.

The National Economic Council director, also a former Goldman Sachs (GS.N) president, said he favours a system of banking where firms like Goldman Sachs focus on trading and underwriting securities, while companies like Citigroup Inc (C.N) primarily issues loans, Bloomberg said.

The White House was not immediately available for comment.

In the meeting which was arranged by Senate Banking Committee Chairman Mike Crapo, Cohn had discussions on topics including financial regulations and overhauling the tax code. The meeting included lawmakers from both political parties and their staffs, Bloomberg reported.

On Tuesday, President Trump said his administration is working on changes to the Dodd-Frank banking regulations that will make it easier for banks to loan money.

Last month White House spokesman Sean Spicer said during a briefing with reporters that Trump still backs his campaign pledge to restore the Glass-Steagall Act. The law, which separated commercial and investment banking activities, was repealed in 1999 and, if reinstated, would mainly apply to larger banks.

(Reporting by Vishal Sridhar in Bengaluru; Editing by Sunil Nair)