Tue May 21, 2013
Ending Wall Street Subsidies
Democratic U.S. Senator Sherrod Brown of Ohio is co-sponsoring bi-partisan legislation calling for the end of federal subsidies for big banks.
Louisiana Republican David Vitter is a co-sponsor. Brown says the "too big to fail" guarantee has allowed large banks to lend risk-free and at lower rates than regional and community banks. He says the Terminating Bailouts for Taxpayer Fairness Act will create a level playing field by ending big bank subsidies and requiring them to have adequate capital to back up their liabilities.
Brown says the six largest banks have grown since the financial crisis, and several are nearly 2 trillion dollars larger than they were then. Spokespeople for the banks say their size makes them more efficient, allowing for more lending. They say the legislation would create a competitive disadvantage.