‘Too Big to Exist’: Sanders Introduces Bill to Break Up Big Banks | Common Dreams

‘Too Big to Exist’: Sanders Introduces Bill to Break Up Big Banks | Common Dreams | Breaking News & Views for the Progressive Community.

Under the proposal, called the Too Big to Fail, Too Big to Exist Act, regulators on the Financial Stability Oversight Council would compile a list of institutions which say they are so large that their collapse could trigger an economic crisis—otherwise known as “too big to fail.”

The Treasury Secretary would then have a year from the bill’s passing to break them up.

“If an institution is too big to fail, it is too big to exist,” Sanders said Tuesday. “No single financial institution should have holdings so extensive that its failure could send the world economy into crisis.”

Sure, this bill stands a snowball’s chance in hell of passing, but when it comes time for your Senator to beg for your vote, just be sure to remember who he or she supported, you or the banks that line their pockets.

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2 thoughts on “‘Too Big to Exist’: Sanders Introduces Bill to Break Up Big Banks | Common Dreams

  1. The moral case for capitalism depends for its legitimacy on several necessary foundations. Perhaps the most significant of these is the cleansing effect of business failures. The availability of these failures as a chastisement for either ignoring or being unable to heed the desires of consumers is essential as an element of accountability. This accountability is especially important in a method of allocating scarce resources that is fueled by the desire for personal profit.

    To support capitalism in a thoughtful fashion has always required some mechanism that would prevent market behavior from being a system of fang and venom. Capitalism has always justified itself as beneficial to the common good. I know of no capitalist philosopher who has argued that market logic is noble because its mandate will be to reward the most vicious businessperson. On the contrary, whatever nobility insists in that system of thought stems from the discipline of failure experienced by firms that fail to enhance the well-being of consumers.

    Consequently, Bernie Sanders can fairly be said to be trying to save capitalism from those who confuse automatic business success with “capitalism.” But, of course, the narrative of capitalism is now little but a myth that applied to an era where barriers to entry were few.

    Neil Browne

    Liked by 1 person

    1. Thank you for your thoughtful and informative response, Dr. Browne. I wish I could add more than mere agreement, but you said it all.

      Like

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