Two very liberal Members of Congress have introduced legislation to address what they believe to be the continued existence of financial institutions that are too big to fail (TBTF). The measure would require Treasury quickly to provide Congress with a list of banks, investment banks, hedge funds and insurance companies it believes meet this criterion, stipulating that some very large U.S. banks would need to be so named regardless of Treasury’s view. Any named firm would then be broken up by Treasury in a manner and at a pace not expressly described in the legislation.
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