MNeagle
6th May 2010, 07:50 PM
May 6 (Bloomberg) -- The Senate rejected a proposal that would have required the nation’s six largest banks, including Citigroup Inc. and Bank of America Corp., to shrink in size as part of an overhaul of the U.S. financial-regulatory system.
The proposal would have turned the banks into “smaller, more manageable†institutions and forced them to maintain enough capital to cover their debts, said Senator Sherrod Brown, the Ohio Democrat who offered the amendment. The Senate voted 61-33 to reject the measure.
Lawmakers are debating Senate Banking Committee Chairman Christopher Dodd’s proposed rules overhaul, designed to prevent a repeat of the 2008 financial crisis that forced the U.S. to extend $700 billion in taxpayer funds to companies including Citigroup and Bank of America. Lawmakers are crafting rules amid voter anger over Wall Street risk-taking blamed for causing the worst economic collapse since the Great Depression.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aA31ozybcF4Y&pos=9
The proposal would have turned the banks into “smaller, more manageable†institutions and forced them to maintain enough capital to cover their debts, said Senator Sherrod Brown, the Ohio Democrat who offered the amendment. The Senate voted 61-33 to reject the measure.
Lawmakers are debating Senate Banking Committee Chairman Christopher Dodd’s proposed rules overhaul, designed to prevent a repeat of the 2008 financial crisis that forced the U.S. to extend $700 billion in taxpayer funds to companies including Citigroup and Bank of America. Lawmakers are crafting rules amid voter anger over Wall Street risk-taking blamed for causing the worst economic collapse since the Great Depression.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aA31ozybcF4Y&pos=9