Skip to main content

Sanders Seeks to Break Up Six Largest Banks

Oct 04, 2018
Sen. Bernie Sanders (I-VT) has introduced legislation that would apply a new cap on how large a U.S.-based financial institution could grow

Sen. Bernie Sanders (I-VT) has introduced legislation that would apply a new cap on how large a U.S.-based financial institution could grow. If enacted, this would force the breaking up of the nation’s six largest lenders.
 
Sanders’ legislation—dubbed the "Too Big to Fail, Too Big to Exist Act”—would cap financial institutions so their total exposure would not exceed three percent of the U.S. GDP, currently at $584 billion. This would impact the operations of JP Morgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley. Sanders’ bill also addresses the future operations of large non-bank financial service companies including Prudential, MetLife and AIG.
 
“No financial institution should be so large that its failure would cause catastrophic risk to millions of Americans or to our nation’s economic well-being,” Sanders said. “We must end, once and for all, the scheme that is nothing more than a free insurance policy for Wall Street: the policy of ‘too big to fail.’”
 
A companion bill was introduced in the House by Rep. Brad Sherman (D-CA) will introduce a companion bill in the House.

 
About the author
Published
Oct 04, 2018
Fed Rate Could Be Down To 4.6% By Year's End

Inflation must hit its 2% goal for Fed to reduce rates.

New Compliance Requirements Add Challenges

Latest changes arrive at an already disruptive time in the mortgage industry

Changes Coming For Investment Properties

Using leases to qualify will require Proof

FCC Adopts New Rules To Close The 'Lead Generator Loophole'

Mortgage lead providers respond, saying this will "wipe out" several small and mid-tier businesses

Trade Associations & Lenders Stand Behind Trigger Leads Bill

Major trade associations like The MBA, NAMB, and BAC, urge action on S. 3502.

Supply And Demand Are Still Alive And Well

Treasury auctions may face weaker demand but they’re still getting done