Friday 06 November 2009

Sen. Bernie Sanders (I-Vt) proposed legislation calling for the breakup of failing financial institutions within a year.

Alison Vekshin, reporting for Bloomberg:

"U.S. Senator Bernie Sanders unveiled legislation requiring Treasury Secretary Timothy Geithner to name banks whose collapse may shake the economy and break up the firms in a year, fueling efforts to end taxpayers bailouts....

“'If an institution is too big to fail, it is too big to exist,' said Sanders, a Vermont independent. 'We should break them up so they are no longer in a position to bring down the entire economy....

"The legislation would give Geithner 90 days to list the commercial and investment banks, hedge funds and insurance companies deemed “too big to fail.” Those firms would be broken up within a year, he said. Representative Paul Kanjorski, a Pennsylvania Democrat, is considering a measure in the House that would break up large financial firms."

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-Victoria Harper