Senator Sanders Proposes Big Bank Breakup

Author:Mr Steven Lofchie
Profession:Cadwalader, Wickersham & Taft LLP

Senator Bernie Sanders (D-VT) introduced legislation that would break up the biggest U.S. banking and financial institutions. The bill is sponsored in the U.S. House of Representatives by Representative Brad Sherman (D-CA).

The bill, titled the Too Big to Fail, Too Big to Exist Act, would, among other things, require:

the restructuring of certain covered financial institutions (including banking organizations, insurance firms, broker-dealers and investment advisers) with a total exposure greater than three percent of the GDP of the U.S.; insurance companies with more than $50 billion in assets to report total exposure to federal financial regulators; and the Federal Reserve Board Vice Chair of Supervision and the Financial Stability Oversight Council to submit written reports on the status of financially significant institutions. Entities...

To continue reading