Panel Approves Curbs on 'Too Big' Firms

[kpete]

Source: Wall Street Journal

By MICHAEL R. CRITTENDEN

WASHINGTON -- A key House panel voted Wednesday to give government the power to break up large financial firms whose collapse might threaten the broader economy, despite aggressive lobbying by major financial institutions to kill the measure.

The amendment illustrates how some lawmakers are willing to go beyond the authority sought by the White House -- which stopped short of giving regulators power to break up healthy firms -- in the redrawing of the financial world's regulatory framework.

A divided House Financial Services Committee voted 38-29 to approve an amendment offered by Rep. Paul Kanjorski (D, Penn.) that would allow a council of regulators to determine whether factors including the size or interconnectedness of an individual firm pose "a grave threat to the United States." Such a firm could be prohibited from merging with another firm or be required to sell business units or assets.

The measure still must be approved by the House of Representatives and the Senate before it could be sent to the White House for approval.

Read more: http://online.wsj.com/article/SB125858925917154669.html

[abelenkpe]

1. Yes!

That is good news. Hope it passes!

[Alcibiades]

2. No way this will get past Lieberman

He'll stand with the Republicans to block this, because we all know who signs his paychecks.