Politico: Bill stands up for smaller banks

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Politico: Bill stands up for smaller banks

Sherrod Brown and David Vitter want to make life a lot tougher for big banks, but the senatorial duo said they’re not trying to break them up — at least not with the bill they plan to unveil Wednesday.

The banking industry is skeptical and is insisting that the proposal, which will force large financial institutions to hold much higher levels of capital, would give banks little choice but to shrink or break up.

At an event at the National Press Club on Tuesday hosted by American Banker, Brown and Vitter pitched the bill as an effort to improve financial stability, protect the financial system from losses during a crisis and take away advantages from the megabanks.

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