The "Too Big To Fail, Too Big To Exist" Act

I LOVE this idea. Vermont Senator Bernie Sanders (I) has proposed a bill requiring the government to identify the corporations and entities it considers “too big to fail”, or requiring of a taxpayer bailout to keep the economy stable. The bill then gives the government a time-line to break up these entities into smaller firms that do not threaten the financial system. The bill is TWO PAGES LONG!!!! Is this not an amazing idea?

I encourage you to read the full text of the bill in pdf format or the main text below. It’s my kind of legislation.

 

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘‘Too Big to Fail, Too Big to Exist Act’’.

SEC. 2. REPORT TO CONGRESS ON INSTITUTIONS THAT ARE TOO BIG TO FAIL.

Notwithstanding any other provision of law, not later than90 days after the date of enactment of this Act, the Secretary of the Treasury shall submit to Congress a list of all commercial banks, investment banks, hedge funds, and insurance companies that the Secretary believes aretoo big to fail (in this Act referred to as the ‘‘Too  Fail List’’).

SEC. 3. BREAKING-UP TOO BIG TO FAIL INSTITUTIONS.

Notwithstanding any other provision of law, beginning 1 year after the date of enactment of this Act, the Secretary of the Treasury shall break up entities included on the Too Big To Fail List, so that their failure would no longer cause a catastrophic effect on the United States or global economy without a taxpayer bailout.

SEC. 4. DEFINITION.

For purposes of this Act, the term ‘‘Too Big to Fail’’ means any entity that has grown so large that its failure would have a catastrophic effect on the stability of either the financial system or the United States economy without

substantial Government assistance.

That’s it. That’s the whole bill minus the header. Why can’t all legislation be so straightforward?