Sanders to launch new plan to break up Wall Street giants, including Goldman Sachs and JP Morgan [View all]

October 3 at 11:58 AM

Sen. Bernie Sanders (I-Vt.) on Wednesday is unveiling legislation that would place a hard cap on the size of financial institutions, a proposal that would splinter Wall Street’s biggest firms in an effort to ward off future taxpayer bailouts.

The measure is dead on arrival with a Republican Congress and President Trump in office. And even if the current Democratic Party were to take control of government, it would face a difficult path to passage, as many of the party’s moderates have opted for answers to the banking crisis that did less to alter the financial system.

Sanders’ bill would bar financial institutions from holding assets, derivatives, and other forms of borrowing worth more than 3 percent of the entire U.S. economy, or $584 billion in today’s dollars.

The legislation would force federal regulators to break up six different Wall Street firms — JPMorgan, Bank of America, Citigroup, Wells Fargo, Goldman Sachs, and Morgan Stanley — as well as insurance giants such as Prudential Financial and MetLife. Collectively, the targeted firms hold more than $13 trillion in assets, according to Sanders aides.

https://www.washingtonpost.com/business/2018/10/03/sanders-launch-new-plan-break-up-wall-street-giants-including-goldman-sachs-jp-morgan/