Sanders' Banking Breakup Plan

Recently Bernie Sanders has been accused of not having a plan for breaking up "Too Big To Fail" financial institutions.

You keep using that word. I do not think it means what you think it means.

Bernie has a plan. A complete plan. Part of it requires action under the existing Dodd-Frank legislation, the other part is laid out in detail in a pending bill he is sponsoring.

Anything else is a gross distortion.

Juan González: Clinton Has "Really Distorted" What Happened When NY Daily News Interviewed Sanders

Bernie and the Big Banks
Robert Reich
Saturday, April 9, 2016

The recent kerfluffle about Bernie Sanders purportedly not knowing how to bust up the big banks says far more about the threat Sanders poses to the Democratic establishment and its Wall Street wing than it does about the candidate himself.

Of course Sanders knows how to bust up the big banks. He’s already introduced legislation to do just that. And even without new legislation a president has the power under the Dodd-Frank reform act to initiate such a breakup.
...
Bernie Sanders isn’t the only one urging the big banks be broken up. Neel Kashkari, the new president of the Federal Reserve bank of Minneapolis – a Republican who used to be at Goldman Sachs – is also pushing to break them up, as has the former head of the Dallas Federal Reserve, among others.

Recall that just eight years ago the biggest banks were up to their ears in fraudulent practices – lending money to mortgage originators to make risky home loans laced with false claims, buying back those loans and repackaging them for investors without revealing their risks, and then participating in a wave of fraudulent foreclosures.
...
The biggest banks still haven’t even come up with acceptable “living wills,” required under Dodd-Frank to show how they’d maintain important functions while going through bankruptcy.

Meanwhile they continue to gamble with depositor’s money. Many of their operations are global, making it even harder for U.S. regulators to rein them in – as evidenced by JPMorgan Chase’s $6.2 billion loss in its “London Whale” operation in 2012.

The bottom line: Regulation won’t end the Street’s abuses. The Street has too much firepower. And because it continues to be a major source of campaign funding, no set of regulations will be tough enough.

So the biggest banks must be busted up.

Clinton Vs. Sanders on Big Banks

Yup, it includes the "shadow banking" sector too.

(Of course it's cross posted from The Stars Hollow Gazette and DocuDharma)

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lunachickie's picture

but I'm just now seeing your byline, and boy, that's great! yay, ek is here Smile

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at least a year, basically as soon as I heard.

I keep myself busy with my own sites The Stars Hollow Gazette and DocuDharma where I write every day and I contribute to others when I can.

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boriscleto's picture

Bill Clinton is a huge asshole.

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" In the beginning, the universe was created. This has made a lot of people very angry, and is generally considered to have been a bad move. -- Douglas Adams, The Hitch Hiker's Guide to the Galaxy "

what do you call two of them?

Too many.

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Oldest Son Of A Sailor's picture

That's not too bad of an idea...

It would probably be worse if some kind of meaningful reform doesn't happen before tempers flare...

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"Do you realize the responsibility I carry?
I'm the only person standing between Richard Nixon and the White House."

~John F. Kennedy~
Economic: -9.13, Social: -7.28,
mjsmeme's picture

to take out a few Bernie supporters.

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He has severe health problems and I don't think he feels well much of the time and I'm sure he resents the constraints his Doctors impose.

Also, it's a delicate thing. My election as capo di tutti established a political dynasty. My chosen successor was paid and quit of all my campaign debts. It turns out he was a do nothing zero I had to work twice as hard at covering for as I ever did when capo.

I spent my remaining political capital electing my brother (first time for everything) and it was near enough because I was very divisive and controversial. After that I was finished, he controlled the operation for 4 more years.

So I've done politics of an incredibly personal and violent kind and I don't any more because I'm tired of it, not that I'm not good at it, just that I am tired. I like my tomatoes.

I sense the same weariness in Bill and I know from experience the exasperation that leads you to say stupid things by which I mean give glimpses of how you really feel. I don't think he means them more than metaphorically and I suspect secretly he'd like nothing more than to retire to his garden.

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I'm not dead because I've been banned. I write more than ever actually.

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SnappleBC's picture

She lied... as she has many times in the past. She is a liar.

I see no reason to play word games.

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A lot of wanderers in the U.S. political desert recognize that all the duopoly has to offer is a choice of mirages. Come, let us trudge towards empty expanse of sand #1, littered with the bleached bones of Deaniacs and Hope and Changers.
-- lotlizard

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shaharazade's picture

my loud screeching cat into a respectful silence. She is now sitting on my computer chair waiting for more Henry.

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Raggedy Ann's picture

when I say that. I say it a lot, too. I even say she's a cheater. The truth gets me flagged, which I take with honor.

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"The “jumpers” reminded us that one day we will all face only one choice and that is how we will die, not how we will live." Chris Hedges on 9/11

coward was one of my favorites too.

Illuminate me- what does the "P" stand for?

I know, if you don't stand for something you'll stand for anything.

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Raggedy Ann's picture

are you referring to the P in TOP? If so, TOP=The Other Place.

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"The “jumpers” reminded us that one day we will all face only one choice and that is how we will die, not how we will live." Chris Hedges on 9/11

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mjsmeme's picture

debate. Liar. Liar. Opens mouth - lies. Closes mouth - smiles smugly. Shouts above the truth with more lies until the moderator finally tells her to shut up - for chrissakes we let you go over your time but its not even your turn now. Ignores all rules and manages to be declared winner. Twisting the truth is what is is. Its a family trait, their kid inherited it.

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I haven't seen enough of the Rodhams to form a judgement (I am certainly warped by the craziness of all my family). Chelsea seems loyal, naive, and robotic which is just what you'd expect.

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Cassiodorus's picture

As James Kwak points out in his piece on Clinton's "plan," plans are pointless if all you are going to do is create new rules which won't be enforced.

http://www.theatlantic.com/business/archive/2015/10/hillary-clintons-wal...

Concealing the idea of "doing something" in a bunch of legal mumbo-jumbo is insuring that nothing will be done. The solution, then, is to actually do something (in this instance, breaking up the banks).

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"The war on Gaza, backed by the West, is a demonstration that the West is willing to cross all lines. That it will discard any nuance of humanity. That it is willing to commit genocide" -- Moon of Alabama

which we have grown to speak of rather loosely as trusts are the creatures of the State, and the State not only has the right to control them, but it is duty bound to control them wherever the need of such control is shown."

Theodore Roosevelt
Speech at Kennedy Plaza, Providence, Rhode Island (23 August 1902)

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Oldest Son Of A Sailor's picture

The banks are overexposed on derivatives again?

How did that happen?

Hillary Clinton said, "Cut It Out!"

Seems like she said that to Bill about him slippin his willie into some strange...

He didn't listen either!

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"Do you realize the responsibility I carry?
I'm the only person standing between Richard Nixon and the White House."

~John F. Kennedy~
Economic: -9.13, Social: -7.28,

she sure did scold them, at $200+K a pop (we're pretty sure about the money, as for the content we'll just have to rely on her word... for now).

I'm give to understand by those that know the family that Bill paid attention, Lloyd Blankfein maybe not so much.

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mjsmeme's picture

meeting by any chance have a whip and some thigh-high boots in it somewhere? And I've got a recent sleazy-Bill story that those close to the family would be shocked, i say shocked by.

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Sticks and stones may break my bones, but whips and chains excite me.

Bill hits on everyone he comes into contact with, of any sex. It's how he relates to people. If that revolts you then you won't get along, most find it charming. He's very bright and willing to listen. It won't change his mind, but he'll listen.

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I like to think they're all good.

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alexa100's picture

I saw the segment on Democracy Now and wanted to post it here.

Good job.

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Go Bernie !!
Smile Smile Smile Smile Smile Smile

n/t

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and his Director, Anton Corbijn, appreciate your response.

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GreyWolf's picture

The view is starting to grow that a bank break-up would be great for the market,
as a $50 big bank stock would get broken up into ten different $10 little bank stocks

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that the $10 Bank will not have the political influence and systemic risk the $50 Bank has.

Personally I think it should be run as a public utility and we should give up on notions like "store of value".

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surprised at the furor that erupted after the interview regarding bernie's answers to the banking issues--which were later found to have been mainly generated & engineered by hillary clinton's supporters on social media."

this is what's been driving her campaign so far: astroturfing, lies, & smears.

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not to mention the political and media elites protecting their phony baloney jobs.

I didn't get a harumpf out of you!

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detroitmechworks's picture

I know the death of his wife hit him pretty hard, but we're sorely in need of his wisdom nowadays.

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I do not pretend I know what I do not know.