The Too Big to Fail, Too Big to Exist Act of 2009

[abelenkpe]

The Too Big to Fail, Too Big to Exist Act of 2009

http://baselinescenario.com/2009/11/09/the-too-big-to-fail-too-big-to-exist-act-of-2009/#more-5439

Introduced by Senator Bernie Sanders of Vermont.

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The bill says that Treasury can break up the institutions any way they want to, so long as the resulting entities do not individually threaten the financial system (and thereby our economic well-being).

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Or you can read about it on Bernie Sanders Site which includes a petition to support the bill:

Too Big to Fail is Too Big to Exist

http://sanders.senate.gov/petition/?uid=c53f1aca-5881-403e-928b-a25980cb4e0c
Financial institutions that are “too big to fail” played a major role in undermining the American economy and driving our country into a severe recession.

Financial institutions that are “too big to fail” put taxpayers on the hook for a $700 billion bailout and more than $2 trillion from the Federal Reserve in virtually zero interest loans.

Huge financial institutions have become so big that the four largest banks in America (JP Morgan Chase, Bank of America, Wells Fargo, and Citigroup) now issue one out of every two mortgages; two out of three credit cards; and hold $4 out of every $10 in bank deposits in the country.

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Check it out. Whaddya think?

[Cant trust em]

1. I like the idea, but the implementation is what will be tricky. nt

[safeinOhio]

2. Here is what I think

Beak up Chase, BOA, Wells Fargo and Citigroup into units as large as my local credit union. Now, they can keep those highly paid CEOs and let them, with all that zillion dollar bonus skill show us how great and smart they are by starting small and growing back into what they were.:P

[endless october]

3. sounds pretty fair to me.

[Ruby the Liberal]

4. Obama wants to give the power to the FED. I appreciate Senator

Sanders redirecting this to Treasury. I would feel even better about it if Elizabeth Warren replaced Geithner before anything is put into place.

[abelenkpe]

5. That would be sweet.

I love Elizabeth Warren!

[abelenkpe]

6. Interesting bit

from link including petition:

http://sanders.senate.gov/petition/?uid=c53f1aca-5881-403e-928b-a25980cb4e0c

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No single financial institution should be so large that its failure would cause catastrophic risk to millions of American jobs or to our nation’s economic well-being.

No single financial institution should have holdings so extensive that its failure could send the world economy into crisis.

We believe it is time to break up the banks and insurance companies which are too big to fail.

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Break up the big banks and insurance companies. Insurance companies?

[Arctic Dave]

7. It sounds too obvious and easy. We will have to have a committee look into it so they can muck it up

[jimshoes]

8. If you're too big to fail....

then you're too big. Way too big.

[Laelth]

9. Excellent. n/t

:dem:

-Laelth