USA Today: Rogue banks remain too big to fail: Our view

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USA Today: Rogue banks remain too big to fail: Our view

USA Today Editorial:

But now comes a bipartisan plan that would end too-big-to fail once and for all. Proposed by Sens. David Vitter, a Louisiana Republican, and Sherrod Brown, an Ohio Democrat, it is the kind of aggressive and simple approach that should have been adopted long ago.

Their plan would require that institutions with more than $500 billion in assets — namely, the six mentioned above — meet a capital reserve requirement of 15%. Simply put, that means these banks would have to set aside 15 cents in liquid assets for every dollar of liabilities. (Smaller banks would still have to meet a complex, but less stringent, set of rules contained in the Basel III treaty signed by the United States.)

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