This REALLY Gets Rid Of Too Big To Fail

[Quixote2]

http://market-ticker.denninger.net/archives/2250-Now-We-See-Whos-Who-Too-Big-To-Fail.html

Now We See Who's Who - Too Big To Fail
Senators Kaufman, Casey, Merkley, Whitehouse and Harkin (along with others who may pile on) have introduced a 20-page amendment to actually address "too big to fail."

It is refreshingly simple legislation - 20 pages of common sense.

It limits firm size to 2% of GDP including off-balance sheet vehicles for banks, 3% for non-banks, and forces divestiture of overages. It also requires reporting and testimony before Congress if regulators fail to promptly address violations.

In addition it places a hard cap of 10% of deposits in any one institution (a limit that already exists by the way, but has been wantonly violated by The Fed allowing mergers during the crisis that breached the limits - and yet there has been no requirement to divest.)

This would place a balance-sheet limit of about $280 billion on a bank.

This would put an instantaneous full-stop to the outrageous obscenity called "Wells Fargo", which has $1.7 trillion in off-balance sheet "assets", not to mention the other "big banks" that have hundreds of billions off sheet as well.

We now get to find out who is really for Wall Street reform - and who needs to lose their seat in The Senate.

http://market-ticker.denninger.net/archives/2251-This-REALLY-Gets-Rid-Of-Too-Big-To-Fail.html

This REALLY Gets Rid Of Too Big To Fail

Then watch this (the video at the link above - this forum's worthless software will not let me embed a video), and make it viral.

Want Too Big To Fail to go away? For real?

We can make it happen.

We must make it happen.

Read The Legislation (all 20 pages of it - it will take you ten minutes)
http://kaufman.senate.gov/imo/media/doc/SAFE%20Banking%20Act%2020101.pdf

Watch the video, send it around.
http://market-ticker.denninger.net/archives/2251-This-REALLY-Gets-Rid-Of-Too-Big-To-Fail.html (this forum's worthless software will not let me embed a video)

This is the opportunity; if we don't force this legislation through we have nobody to blame but ourselves for the consequences.

[gunny highway]

not to defend the big banks or anything but i disagree with this on principle. this is just another slick way the government is trying to insinuate themselves into the private sector. today they limit how much banks and insurance companies can make, tomorrow it's someone else. continue this cycle until the everybody has an earnings ceiling. Hooray govt!

[Apparition]

And where in the Constitution does it grant the federal government the authority to determine the size of banks?

It's too bad that many of them don't bother to check the Federal Register in order to realize how many damned regulations exist already.

It's also sad many think just implementing more regulations will solve the problem when in many cases these regulations benefit the larger companies and burden the smaller companies.

And when the next financial crisis occurs we all can guess what they'll do next...add even MORE regulations. Gah! :-[ >:(