Sens. Sherrod Brown (D-OH), Ted Kaufman (D-DE), Robert Casey (D-PA), and Sheldon Whitehouse (D-RI) are introducing a new financial-reform bill, the Safe Banking Act of 2010. The legislation would limit the size of the banks.
The major provisions call for (1) Imposing a strict 10 percent cap on any bank-holding-company’s share of the United States’ total insured deposits, (2) Reducing the maximum amount of non-deposit liabilities at financial institutions, and (3) Setting into law a 6 percent leverage limit for bank-holding companies and selected non-bank financial institutions.
As I understand the "financial-ese," this would, in effect, set limits for the size of banks, and also call for some existing banks to get smaller so that they would no longer, supposedly, be "too big to fail." The measure is supported by former Fed Chairman, Paul Volcker.
Also, as a political aside: I don't know much about Ted Kaufman, but the more I see of Sherrod Brown, Robert Casey, and Sheldon Whitehouse, the more I like.
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