Katrina vanden Heuvel: Breaking Up Is Hard To Do

[marmar]

from The Nation:



Breaking Up Is Hard To Do
posted by Katrina vanden Heuvel on 11/12/2009 @ 4:10pm


When it comes to understanding the real economy and the struggles of ordinary Americans, Senator Bernie Sanders always seems to be ahead of the curve and fighting like hell for Congress to show leadership and be responsive.

Now he's doing it once again with his legislation to break up the Too Big To Fail financial institutions that pose a threat to our entire economy.

Sanders coined the phrase, "If you're too big to fail, you're too big to exist," back when he voted against the initial Wall Street Bailout in October 2008. Now, none other than former Fed Chairmen Alan Greenspan and Paul Volcker are parroting it, and a lot of other notables from across the political spectrum have come around to support busting up the banks too, as the Senator describes below.

The bill itself is a thing of beauty in its simplicity (and length! only two pages in this age of 1000-page behemoths!). It would give Treasury Secretary Timothy Geithner 90 days to compile a list of commercial banks, investment banks, hedge funds and insurance companies that he deems too big to fail, including "any entity that has grown so large that its failure would have a catastrophic effect on the stability of either the financial system or the United States economy without substantial Government assistance." Within one year after the legislation becomes law, the Treasury Department would be required to break up those financial institutions. ..........(more)

The complete piece is at: http://www.thenation.com/blogs/edcut/496401/breaking_up_is_hard_to_do

[polichick]

1. This part says it all...

"And maybe the last issue is that--you know, some of my colleagues talk about regulating Wall Street. I think the evidence is pretty clear that it is Wall Street that regulates the Congress. Over a 10-year period, Wall Street has put $5 billion into lobbying and campaign contributions. They were extremely effective in doing away with Glass-Steagall and moving toward deregulation. They had the leadership of both parties working for their interests."

[truedelphi]

3. That snip of the piece is spot on.

It truly is "Wall street that regulates the Congress."

[OHdem10]

2. Watch Senate and House Members and keep their feet to fire.

The Bankers are unhappy about this and are already yelling.
Watch our "Pro Business" members and keep them from defecting
and supporting Bankers and Business.