The Washington Post: A left-right populist alliance against the big banks?

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The Washington Post: A left-right populist alliance against the big banks?

This week, Sens. Sherrod Brown and David Vitter are introducing a bill designed to make failure by the big banks less likely, in order to defend our economic system from another 2008-style meltdown. As the two senators put it, the measure would “ensure that all banks have proper capital reserves to back up their sometimes risky practices — so that taxpayers don’t have to,” while requiring that the largest banks “have the most equity, as they should.”

The banks are already arguing that this is a bad idea that will hamper economic growth. Matthew Yglesias has a good post explaining why this argument is bogus and why such a measure is indeed needed to safeguard the economy.

All of which raises a question: Is it possible that a genuine and broad left-right populist alliance can come together against the banks around this legislation?

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