Senator Introduces Bill to Break Up Big Banks

by devteam April 11th, 2013 | Share

In response to a recent remark byrnAttorney General Eric H. Holder, Jr., Senator Bernie Sanders (I-VT) hasrnintroduced Senate legislation aimed at breaking up banks regarded as “tornbig to fail.”   Holder had said hisrnJustice Department may not pursue criminal cases against big banks becausernfiling charges could “have a negative impact on the national economy,rnperhaps even the world economy.”</p

Sandersrnsaid of his bill, “We have a situation now where Wall Street banks are notrnonly too big to fail, they are too big to jail.</p

The bill, currently titled the “ToornBig to Fail, Too Big to Exist Act.” was simultaneously introduced into thernHouse by Brad Sanders (D-CA).  If enactedrnit would give the Treasury Department 90 days to identify commercial banks,rninvestment banks, hedge funds and insurance companies “that the Secretaryrnbelieves are too big to fail, which shall include, but is not limited to anyrnUnited States bank holding companies that have been identified as systemicallyrnimportant banks by the Financial Stability Board” and whose “failurernwould have a catastrophic effect on the stability of either the financialrnsystem or the United States economy without substantial governmentrnassistance.”</p

The bill would then mandate thernTreasury secretary to break up the identified entities so that that failure ofrnany one would “no longer cause a catastrophic effect on the United Statesrnor global economy without a taxpayer bailout.”

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About the Author


Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

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