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Bernie promises to "break up" big banks as President
#9
http://www.bloomberg.com/news/articles/2016-01-05/wall-street-isn-t-feeling-the-bern-as-sanders-calls-for-breakup

Sanders said in a written copy of his remarks that he will use Section 121 of the Dodd-Frank Act to break up the largest banks. That allows the Fed, with assent from the Financial Stability Oversight Council, to force a bank to sell assets and shrink if the lender is deemed to pose a “grave threat” to the nation’s financial stability and less severe actions are inadequate to mitigate the threat. While the president doesn’t have direct control over the Fed, he or she can nominate new governors and appoint the chairman.

Sanders also said he would fight to reinstate the part of the Glass-Steagall Act that separated commercial and investment banking. That would require a vote by Congress, and even using Dodd-Frank to shrink banks could face internal resistance in Washington, said Brian Gardner, a political analyst at investment bank Keefe, Bruyette & Woods.

“The Fed would probably lean in the direction of a new administration, but the Fed is also a slow-moving bureaucracy,” Gardner said in a report Tuesday. “Fed officials who oppose an across-the-board breakup of big banks could effectively use the bureaucracy to block efforts to dismantle big banks.”





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RE: Bernie promises to "break up" big banks as President - fredtoast - 01-07-2016, 12:55 PM

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