Bernie Sanders Wants To Dissolve All Big Banks
by James Beattie, Western Journalism
A bill proposed by Sen. Bernie Sanders, I-Vt., would require the biggest banks in the nation to dissolve. Sanders is challenging former secretary of state and first lady Hillary Clinton for the 2016 Democratic presidential nomination.
The “Too Big to Fail, Too Big to Exist Act” would mandate the dissolution of J.P. Morgan Chase, Citigroup, Goldman Sachs, Bank of America, and Morgan Stanley within one year of the bill’s enactment, according to a summary.
It would also require the creation of a “Too Big to Fail List” of banks who “pose a threat to the financial system.”
This list will be compiled by a super-committee of bank regulators, or the Financial Stability Oversight Council (FSOC), based on a variety of factors enumerated in the bill.
“No single financial institution should have holdings so extensive that its failure could send the world economy into crisis,” Sanders said in a statement. “If an institution is too big to fail, it is too big to exist.”
Rep. Brad Sherman, D-Calif., introduced a companion bill in the House. “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.
With both houses of Congress firmly in GOP control, the bill is unlikely to become law anytime soon.
Sanders announced his presidential run late last month. Although Clinton is the clear frontrunner for the Democrats, the Vermont Independent is gaining some momentum in New Hampshire, home of the first-in-the-nation primary.
A poll conducted by the University of New Hampshire Survey Center between April 24 and May 3 showed Clinton with 51 percent and Sanders with 13 percent, WMUR reported Tuesday. The poll surveyed 229 likely Democratic primary voters in the Granite State, and has a margin of error of 6.5 percent.
Although this is a substantial lead for Clinton, the left-wing populist message appears to be slowly resonating among Democrats. An April CNN poll showed Clinton garnering 69 percent of support from Democrats and Democratic-leaning independents in New Hampshire, and Sanders only 5 percent.
h/t: Business Insider
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