Bill to cap size of banks introduced in the Senate
The Hill – A bill that would limit the size of the nation's financial institutions, ensure firms have money on hand to back up liabilities, boost lending to small businesses and prevent another economic collapse was introduced in the Senate on Wednesday.
Democratic Sens. Ted Kaufman (D-Del.), Sherrod Brown (D-Ohio), Bob Casey (D-Pa.) and Sheldon Whitehouse (D-R.I.) introduced the measure today that would impose a 10 percent cap on any bank-holding-company's share of the U.S.'s total insured deposits, reduce the amount of non-deposit liabilities to 2 percent of gross domestic product for banks and 3 percent for non-banks and set a 6 percent leverage limit for bank holding companies and select nonbank institutions.
"If we're going to prevent big banks from putting our entire economy at risk, we need to place sensible size limits on our nation's behemoth banks," Brown said. "We need to ensure that if banks gamble, they have the resources to cover their losses."
