Bernie Sanders on Wednesday introduced legislation to break up the nation’s biggest banks in order to safeguard the economy and prevent another costly taxpayer bailout. Rep. Brad Sherman proposed a companion bill in the House. “No single financial institution should have holdings so extensive that its failure could send the world economy into crisis,” Sanders said. “If an institution is too big to fail, it is too big to exist.”
The biggest banks in the United States are now 80 percent bigger than they were one year before the financial crisis in 2008 when the Federal Reserve provided $16 trillion in near zero-interest loans and Congress approved a $700 billion taxpayer bailout.
“Never again should a financial institution be able to demand a federal bailout,” Sherman said. “They claim; ‘If we go down, the economy is going down with us,’ but by breaking up these institutions long before they face a crisis, we ensure a healthy financial system where medium-sized institutions can compete in the free market.”
The 2008 financial crisis had a devastating impact on the U.S. economy. It cost as much as $14 trillion, the Dallas Federal Reserve calculated. The Government Accountability Office pegged the cost at $13 trillion. The Congressional Budget Office estimated that the crisis nearly doubled the national debt and cost more than the Bush tax cuts and the wars in Iraq and Afghanistan combined.
The six largest U.S. financial institutions today have assets of some $10 trillion, an amount equal to almost 60 percent of gross domestic product. They handle more than two-thirds of all credit card purchases, control nearly 50 percent of all bank deposits, and control over 95 percent of the $240 trillion in derivatives held by commercial banks.
The Sanders and Sherman legislation would give banking regulators 90 days to identify commercial banks, investment banks, hedge funds, insurance companies and other entities whose “failure would have a catastrophic effect on the stability of either the financial system or the United States economy without substantial government assistance.”
The list would have to include Bank of America, Bank of New York Mellon, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley, State Street and Wells Fargo. These eight institutions already have been deemed “systemically important banks” by the Financial Stability Board, the international body which monitors the global financial system. Under the legislation, the U.S. Treasury Department would be required to break up those and any other institutions deemed too big to fail by the treasury secretary. Any entity on the too-big-to-fail list would no longer be eligible for a taxpayer bailout from the Federal Reserve and could not use their customers’ bank deposits to speculate on derivatives or other risky financial activities.
There's a big difference between campaigning and actually governing. How many things has Obama re-neged on? How about all the other Presidents in the past 60 or so years?
If you've followed Bernie's career, you know this is what he believes in. He makes me look centrist. That's what I'm talkin' about.
At least cast a vote for him in the primary. That makes more of a difference than baying at the moon.
Bernie is the best...he is the only guy I would honestly stump for.
The problem is he will shred Wall Street which guarantees The Pantsuited Cyborg wins. And no matter how much he might make her pivot somewhat left (hah!) she will never come down for the reforms on Wall Street that are needed because they own her.
If you've followed Bernie's career, you know this is what he believes in. He makes me look centrist. That's what I'm talkin' about.
At least cast a vote for him in the primary. That makes more of a difference than baying at the moon.
I understand what he's trying to do, and what I see is Marxism. He isn't the candidate for me. That being said, given the way the New World Order is going, it would not surprise me if he ended up in office, and not only pushed the Marxism, but also social authoritarianism for the rest of the agenda.
Marxism?
Does anyone in this country understand what the word socialism, and marxism actually mean?
Marxism?
Does anyone in this country understand what the word socialism, and marxism actually mean?
Newspeak changes the definition of words day after day, under the guise of "political correctness". I don't know what you want it to be today, but I stand by what I type.
The GOP has programmed people that anything short of letting the rich make the poor into shoes is TEH DEMON COMMINISM!!1!
Bernie's a democratic socialist -- he'd be center-left in most of Europe. Their Socialists would toss him out as a reactionary, let alone real Marxists.
You want to promote the advancement of the people? Step out of their path. Give a hand up, not a hand out.
Awww, how cute.
People talk about pro small businesses and making corporate fat cats "pay their fair share"... well guess who ends up the worst off as a result of that "fair share" legislation? You guessed it, the small business owners. You think those corporate fat cats get paid 100% in cash? Heck no. It's mostly pre-tax benefits. You want to promote the advancement of the people? Step out of their path. Give a hand up, not a hand out. You want to trust bust? How about addressing some of the unintentional monopolies that have been created while you're at it? No one monopoly is better than another.
You want to trust bust? How about addressing some of the unintentional monopolies that have been created while you're at it? No one monopoly is better than another.
Meanwhile, back in the Mother Country....
Meanwhile, back in the Mother Country....
Today is election day in the UK. BBC coverage starts soon here
It's going to be tight with a coalition government expected.
HOLY CRAP!!! Scottish National Party is forecasted to take 58 out of 59 seats in Scotland. Labour took a bath there.
BBC says Conservatives will get 316 seats (326 needed for a majority).
.Only for you WASPs. My people were destitute farmers on lousy land with crappy weather and unattractive women, but a thousand miles farther east.