Democrats in both chambers are ramping up pressure on “too big to fail” financial institutions, introducing bills that would limit just how big a bank could get.
On Thursday, Reps. Brad Miller (N.C.) and Keith Ellison (Minn.) introduced legislation that would set a series of caps on the size and reach of the nation’s “megabanks.” Noting that the nation’s 10 largest banks hold assets exceeding 61 percent of the nation’s economy, they argued that despite the financial crisis and the Wall Street reform law, the nation’s banking titans still pose a threat to the nation’s financial system and economy.
“The gigantic size of megabanks, and the perception in the marketplace that they are too big for the government ever to permit to fail, gives them an unfair competitive advantage over smaller financial institutions that distorts the market and discourages competition.” said Miller. “The lack of competition in the banking industry, in turn, leads to ever-higher levels of risk in the system.”
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