Brown pushing bill to keep taxpayers from bailing out banks

[sunwyn]

Love Sen. Brown.

WASHINGTON —

Sen. Sherrod Brown introduced a controversial bill Wednesday designed to reduce the possibility that taxpayers would ever again have to bail out some of the nation’s largest banks.

Joined by his Republican co-sponsor, David Vitter of Louisiana, at a news conference on Capitol Hill, Brown’s bill would require the nation’s largest banks to set aside a greater percentage of capital to protect the institutions against a major failure.

“If mega banks want to be large and complex, that’s their choice,’’ said Brown, D-Ohio. “But taxpayers shouldn’t have to subsidize their risk taking. If big banks fail, their executives and their investors should pay the price. This may be bad news for a few mega banks but it’s good news for American’s banking system.’’

http://www.mydaytondailynews.com/news/news/national-govt-politics/brown-pushing-bill-to-keep-taxpayers-from-bailing-/nXW3N/?icmp=daytondaily_internallink_textlink_apr2013_daytondailystubtomydaytondaily_launch

[dtom67]

1. it is good is good news in the long run

But I think it might also open the door to depositors getting "Cypressed" if the bank fails.
It is a step in the right direction, which means that thhe rich and powerful will squash it n its tracks...

[Laelth]

2. It's the right thing to do. I have doubts that this bill will become law.

All the same, I applaud Senators Brown and (choke) Vitter for their attempt to protect America's taxpayers.

-Laelth

[Proud Liberal Dem]

3. Great

but it would help if Republicans stopped trying to weaken/repeal Dodd-Frank and stopped preventing a cloture vote on President
Obama's nominee to CFPB. Wonder if Vitter can help with that? Not holding my breath though

[The Wizard]

4. Seize their assets

and jail their upper management.

[snappyturtle]

5. I'm so confused. I thought Dodd-Frank protected taxpayers from

bailing out banks. So I just checked a bit..found this:

http://www.whitehouse.gov/economy/middle-class/dodd-frank-wall-street-reform

Holding Wall Street Accountable
The financial crisis was the result of a fundamental failure from Wall Street to Washington. Some on Wall Street took irresponsible risks that they didn’t fully understand and Washington did not have the authority to properly monitor or constrain risk-taking at the largest firms. When the crisis hit, they did not have the tools to break apart or wind down a failing financial firm without putting the American taxpayer and the entire financial system at risk. Financial reform includes a number of provisions that will curb excessive risk taking and hold Wall Street accountable.

Taxpayers will not have to bear the costs of Wall Street’s irresponsibility: If a firm fails in the future it will be Wall Street – not the taxpayers – that pays the price.

Separates “proprietary trading” from the business of banking: The “Volcker Rule” will ensure that banks are no longer allowed to own, invest, or sponsor hedge funds, private equity funds, or proprietary trading operations for their own profit, unrelated to serving their customers. Responsible trading is a good thing for the markets and the economy, but firms should not be allowed to run hedge funds and private equity funds while running a bank.

Ending bailouts: Reform will constrain the growth of the largest financial firms, restrict the riskiest financial activities, and create a mechanism for the government to shut down failing financial companies without precipitating a financial panic that leaves taxpayers and small businesses on the hook.

(Underlining mine)

[mtasselin]

6. Time

It is only a matter of time before the house of cards crashes again. Who will get blamed the dinos, and that will be Obama's legacy.

[libdude]

7. Right on Sen. Brown

As an Ohioan, I am fortunate to have Sen. Brown in the Senate. This step of holding the banks responsible is in the right direction as is the current Dodd-Frank. In my thought, to bring back Glass-Stegall would help by forcing the banks to separate commercial and investment banking.
Now for a real far fetched idea, why not just nationalize the banks? Create a national bank that competes with these private banks, the public can invest their money into it just as they do with credit unions.
The Great Depression and the Great Recession should give ample basis to do something different.

[KharmaTrain]

8. Mixed Bag Here...

...I support breaking up the big banks and restoring many of the regulations that were in place prior to the late 70s...but I'm not so sure I'd want to let banks, with billions in individual savings, go down the tubes if there's another economic meltdown. The idea of forcing banks to be more liquid is a good thing but letting them go into default could create a lot of economic chaos...especially for those at the lower end of the ladder...the big guys will always find ways to get their money.