General Discussion

Donkees

(31,453 posts) Wed Oct 3, 2018, 01:44 PM Oct 2018

Sanders to launch new plan to break up Wall Street giants, including Goldman Sachs and JP Morgan

October 3 at 11:58 AM

Sen. Bernie Sanders (I-Vt.) on Wednesday is unveiling legislation that would place a hard cap on the size of financial institutions, a proposal that would splinter Wall Street’s biggest firms in an effort to ward off future taxpayer bailouts.

The measure is dead on arrival with a Republican Congress and President Trump in office. And even if the current Democratic Party were to take control of government, it would face a difficult path to passage, as many of the party’s moderates have opted for answers to the banking crisis that did less to alter the financial system.

Sanders’ bill would bar financial institutions from holding assets, derivatives, and other forms of borrowing worth more than 3 percent of the entire U.S. economy, or $584 billion in today’s dollars.

The legislation would force federal regulators to break up six different Wall Street firms — JPMorgan, Bank of America, Citigroup, Wells Fargo, Goldman Sachs, and Morgan Stanley — as well as insurance giants such as Prudential Financial and MetLife. Collectively, the targeted firms hold more than $13 trillion in assets, according to Sanders aides.

https://www.washingtonpost.com/business/2018/10/03/sanders-launch-new-plan-break-up-wall-street-giants-including-goldman-sachs-jp-morgan/

BREAK UP THE BANKS: Any financial institution that's too big to fail is too big to exist. It's time to break up the big banks. Today I'm introducing legislation to do just that.

Join me for a discussion with Rep. Brad Sherman (D-Calif.) and Simon Johnson, former chief economist at the International Monetary Fund and current MIT professor.

https://www.facebook.com/senatorsanders/videos/189328311961376

14 replies

= new reply since forum marked as read

Highlight:

Sanders to launch new plan to break up Wall Street giants, including Goldman Sachs and JP Morgan (Original Post) Donkees Oct 2018 OP

Lets hope we can regain control in time to at least get back Obama's bank regulations BeckyDem Oct 2018 #1

So Many Windmills; So Few Lances! MineralMan Oct 2018 #2

Yep. Like the 8 hour work day, abolition of child labor, worker safety conditions... Tom Rinaldo Oct 2018 #5

Imagine how much easier it would be if a guy was a member MineralMan Oct 2018 #8

You mean like being part of the Senate Leadership of a major political party? n/t Tom Rinaldo Oct 2018 #10

Yes. Like that. MineralMan Oct 2018 #11

Oh. OK Tom Rinaldo Oct 2018 #12

A good resource link! MineralMan Oct 2018 #13

You are sincerely welcome Tom Rinaldo Oct 2018 #14

" Hell no we Can't" bahrbearian Oct 2018 #7

Lets bust the trust n/t safeinOhio Oct 2018 #3

Taxpayers would be startled to know they are still guarantors for any big bank failure. True! Fred Sanders Oct 2018 #4

Senator Sanders Facebook Video: ''Break Up the Banks'' Donkees Oct 2018 #6

Video: Donkees Oct 2018 #9

BeckyDem

(8,361 posts)

1. Lets hope we can regain control in time to at least get back Obama's bank regulations

Reply to Donkees (Original post)

Wed Oct 3, 2018, 01:47 PM

Oct 2018

or there will be another crash. Those who voted to lift them were dead wrong.

MineralMan

(146,329 posts)

2. So Many Windmills; So Few Lances!

Reply to Donkees (Original post)

Wed Oct 3, 2018, 01:47 PM

Oct 2018

And Sancho Panza's donkey, Dapple, is so slow...

Tom Rinaldo

(22,913 posts)

5. Yep. Like the 8 hour work day, abolition of child labor, worker safety conditions...

Reply to MineralMan (Reply #2)

Wed Oct 3, 2018, 01:52 PM

Oct 2018

all hopeless windmills to tilt at back in the day. There never is a lack of them.

MineralMan

(146,329 posts)

8. Imagine how much easier it would be if a guy was a member

Reply to Tom Rinaldo (Reply #5)

Wed Oct 3, 2018, 01:59 PM

Oct 2018

of the majority party. Those things came about by labor demanding them and lawmakers passing laws.

It's hella easier to get a law passed if you're part of a larger group and have won a legislative majority.

Tom Rinaldo

(22,913 posts)

10. You mean like being part of the Senate Leadership of a major political party? n/t

Reply to MineralMan (Reply #8)

Wed Oct 3, 2018, 02:20 PM

Oct 2018

MineralMan

(146,329 posts)

11. Yes. Like that.

Reply to Tom Rinaldo (Reply #10)

Wed Oct 3, 2018, 02:22 PM

Oct 2018

Then, your excellent proposals would actually have a chance of being adopted, passed, and becoming law.

Tom Rinaldo

(22,913 posts)

12. Oh. OK

Reply to MineralMan (Reply #11)

Wed Oct 3, 2018, 02:33 PM

Oct 2018

https://www.democrats.senate.gov/

MineralMan

(146,329 posts)

13. A good resource link!

Reply to Tom Rinaldo (Reply #12)

Wed Oct 3, 2018, 02:36 PM

Oct 2018

Thanks.

Tom Rinaldo

(22,913 posts)

14. You are sincerely welcome

Reply to MineralMan (Reply #13)

Wed Oct 3, 2018, 02:46 PM

Oct 2018

You always are a good sport. And a good Dem.

bahrbearian

(13,466 posts)

7. " Hell no we Can't"

Reply to MineralMan (Reply #2)

Wed Oct 3, 2018, 01:58 PM

Oct 2018

safeinOhio

(32,715 posts)

3. Lets bust the trust n/t

Reply to Donkees (Original post)

Wed Oct 3, 2018, 01:49 PM

Oct 2018

Fred Sanders

(23,946 posts)

4. Taxpayers would be startled to know they are still guarantors for any big bank failure. True!

Reply to Donkees (Original post)

Wed Oct 3, 2018, 01:50 PM

Oct 2018

And the banks are literally drowning in cheaply obtained mountains of cash Treasury has printed with wanton abandon for decades to pay for the deficit...on paper.

Donkees

(31,453 posts)

6. Senator Sanders Facebook Video: ''Break Up the Banks''

Reply to Donkees (Original post)

Wed Oct 3, 2018, 01:54 PM

Oct 2018

BREAK UP THE BANKS: Any financial institution that's too big to fail is too big to exist. It's time to break up the big banks. Today I'm introducing legislation to do just that.

Join me for a discussion with Rep. Brad Sherman (D-Calif.) and Simon Johnson, former chief economist at the International Monetary Fund and current MIT professor.

https://www.facebook.com/senatorsanders/videos/189328311961376

Donkees

(31,453 posts)

9. Video:

Reply to Donkees (Original post)

Wed Oct 3, 2018, 02:16 PM

Oct 2018

Published on Oct 3, 2018

Excerpt:

On the 10th anniversary of the Wall Street bailout, Sen. Bernie Sanders (I-Vt.) introduced legislation to break up the nation’s biggest banks and risky financial institutions in order to safeguard the economy and prevent another costly taxpayer bailout. Rep. Brad Sherman (D-Calif.) will introduce a companion bill in the House.

Today the six largest banks in America control assets equivalent to more than half the country’s GDP and the four largest banks are on average about 80 percent larger today than they were before the bailout. The legislation introduced Wednesday would cap the size of the largest financial institutions so that a company’s total exposure is no more than 3 percent of GDP, about $584 billion today.

By applying a cap on the size of financial institutions, the bill would break up the six largest banks in the country: JP Morgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley. The bill would also address large non-bank financial service companies such ase 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.’”

https://www.sanders.senate.gov/

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