Washington Post: Brown-Vitter bill seeks to end ‘too big to fail’

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Washington Post: Brown-Vitter bill seeks to end ‘too big to fail’

A pair of lawmakers want the nation’s largest banks to sock away more capital to guard against a fresh economic downturn, making them less dependent on government bailouts.

Five years after the banking system nearly imploded and three years after Congress passed far-reaching measures to improve it, two senators have put forth an effort to rein in megabanks.

Sens. Sherrod Brown (D-Ohio) and David Vitter (R-La.) introduced legislation Wednesday that aims to end what the markets perceive as an implicit guarantee that the government will rescue big banks if they run into trouble. That implied backing has given firms a green light to engage in risky activities that pose a threat to the financial system, the lawmakers said.

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