Sen. Sanders wants to break up JP Morgan, Berkshire Hathaway and other large financials
Source: CNBC
Liz Moyer
Sen. Bernie Sanders wants to break apart giant financial companies including J.P. Morgan Chase, Goldman Sachs and Warren Buffett's conglomerate Berkshire Hathaway, arguing their individual sizes expose the U.S. economy to too much risk.
The Vermont independent and former presidential candidate introduced a bill Wednesday that would require the breakup of any financial company that has a total exposure of greater than 3 percent of gross domestic product. Based on that threshold, which is $584 billion, six banks and the four nonbanks would have to split up.
The banks are J.P. Morgan, Bank of America, Citigroup, Wells Fargo & Co., Goldman and Morgan Stanley. The nonbanks are Berkshire as well as Prudential Financial, MetLife and American International Group.
"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 in a statement. "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.'"
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Read more: https://www.cnbc.com/2018/10/03/sen-sanders-wants-to-break-up-jp-morgan-berkshire-hathaway.html
sakabatou
(42,174 posts)should be in jail.
rurallib
(62,448 posts)too big to fail is too big to exist
Power 2 the People
(2,437 posts)Too big to exist.
LiberalFighter
(51,088 posts)zentrum
(9,865 posts)...to consolidate under Clinton who lessened the regulations, as I remember it.
zentrum
(9,865 posts)Le Gaucher
(1,547 posts)ProfessorGAC
(65,174 posts)Then it becomes strictly political and the legislators all have their pet exceptions.
The premise is based upon size, so if you hit the 3% of GDP threshold you are now too big.
Who runs the company cannot matter in an idea like this. (Which i support, by the way. There is a huge difference between efficiency based upon scale and oligopoly.)
Bayard
(22,149 posts)And include insurance and pharmaceutical companies.
Uncle Joe
(58,420 posts)Thanks for the thread Omaha Steve.
Demsrule86
(68,683 posts)PA and other states nears me...This is why I would only vote for Sen. Sanders if he was the Democratic President nominee...I disagree with this policy.
RobinA
(9,894 posts)Even if I agreed, I would certainly not be in favor of doing this while a loose nuke is President.
Also, banks don't cause collapses, people do. Shore up the regulatory environment including enforcement. Breaking up that many large financial institutions would be incredibly destabilizing. And no, I don't like these gigundo too-big-to-fail institutions, but we have them, so we have to deal with THAT fact.