Senators introduce bill to break up megabanks

[coyotes_geek]

Yes, this absolutely needs to pass.

No, there's not a chance in it actually will pass.

Still..........

WASHINGTON (Reuters) - A small bipartisan group of senators on Thursday introduced legislation that would break up Wall Street's megabanks by separating traditional banking activity from riskier financial services.

The bill, called the 21st Century Glass-Steagall Act, has an uncertain future, but it shows some lawmakers' frustration that banks have only continued to grow since the 2007-2009 financial crisis.

The legislation introduced on Thursday would separate the operations of traditional banks with accounts backed by the Federal Deposit Insurance Corp from riskier activities such as investment banking, insurance, swaps and hedge funds.

link

[RandomGuy]

I don't think they need to be actively broken up by the government itself.

We simply need to raise capital requirements to have them be proportionately larger as a bank gets larger, i.e. bigger bank = bigger % reserves

Investors will realize that having a bank be too large reduces returns, and they will "release shareholder value" by splitting them up in ways that stand a good chance in succeeding.

A simple, easy to understand government rule, that lets private sector actors run the particulars.

[boutons_deux]

Much easier to set up a govt, national retail/lending bank chain as a non-profit public utility for money, since everybody needs money like they need sewers, water, electricity, roads.

Same with non-profit govt health insurance, and non-profit govt medical care.

Then let the for-profit asshole wealth-suckers try to compete with govt equivalents.

[Blake]

Meh. I prefer to do business with Payday Advance or le Max.

[Venti Quattro]

I like Chase

[boutons_deux]

Every single Repug Congress asshole will vote against, even the "freedom! water the tree!" tea baggin scrotum suckers and libertarians (who are financed by the 1%).

Has no chance of passing, absolutely none.

derivatives will also remain secret and unregulated, high-speed trading rigging never blocked, hedge/capital fund insider trading untouched.

America is so ed, and un able, but enjoy your sterile, futile debates.

btw, hedge funds can now advertize for funds from the muppets.

[FuzzyLumpkins]

Every single Repug Congress asshole will vote against, even the "freedom! water the tree!" tea baggin scrotum suckers and libertarians (who are financed by the 1%).

Has no chance of passing, absolutely none.

derivatives will also remain secret and unregulated, high-speed trading rigging never blocked, hedge/capital fund insider trading untouched.

America is so ed, and un able, but enjoy your sterile, futile debates.

btw, hedge funds can now advertize for funds from the muppets.

Typical boomer: its already ed up so lets just let it go.

[mercos]

Its adorable that some are still trying, but they are attempting to patch up a sinking ship. Efforts are already underway to further weaken the Dodd-Frank regulations, which were a joke to begin with. The banks are untouchable.. After the bailout, when even Republicans were ready to spill banker blood in the streets, we still couldn't get meaningful financial regulation.

[boutons_deux]

Typical boomer: its already ed up so lets just let it go.

That's not my position. GFY

Even if lots of us don't want to "let it go", there's simply no ing way to obtain a majority in Congress of Liz Warren/Sherrod Brown-type people to back the financial industry, ALEC, US CoC, API, and other mega-corps and their attack dogs like they're ing us.

no majority? the sinking ship keeps sinking

And that's just Federal, look at how Repugs/VRWC are ing up red states.