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Text size [+][-]  Friday March 12 2010GLOBAL EDITION

Considered view
09 Nov 2009 09:53

Green Mountain boy

Context News

Vermont Senator Bernard Sanders introduced legislation Friday that would have the US Secretary of the Treasury designate banks, securities firms and insurers that are too big to fail, and the power to break them up.

The “Too Big to Fail, Too Big to Exist Act” would aim to transform the financial system into companies small enough “that their failure would no longer cause a catastrophic effect on the United States or global economy without a taxpayer bailout”.

Bernie Sanders’ ‘Too Big to Fail’ act proposes that if a firm is so big that its failure would threaten the system, it should be broken up – not protected by a bailout. As simple as it sounds, its explicit tone trumps competing bills in capitalistic clarity.

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