Sanders, Sherman Introduce Legislation to Break Up Big Banks
WASHINGTON, April 9 – Sen. Bernie Sanders (I-Vt.) today introduced to break up banks that have grown so big that the Justice Department fears the financial system would be put at risk if criminal charges were filed. Rep. Brad Sherman (D-Calif.) proposed a companion bill in the House.
The 10 largest banks in the United States are bigger now than before a taxpayer bailout following the 2008 financial crisis when the Federal Reserve propped up financial institutions with $16 trillion in near zero-interest loans and Congress approved a $700 billion rescue for banks that some considered “too big to fail.” Attorney General Eric H. Holder Jr. now says the Justice Department may not pursue criminal cases against big banks because filing charges could “have a negative impact on the national economy, perhaps even the world economy.”