Senator Elizabeth Warren once again slammed financial regulators in a speech Tuesday saying their complacency has allowed “Too Big to Fail” banks to continue to flourish five years after they sent the economy tumbling.
“Who would have thought five years ago, after we witnessed firsthand the dangers of an overly concentrated financial system, that the Too Big to Fail problem would only have gotten worse?” Warren asked, speaking at an event organized by progressive think tank the Roosevelt Institute and Americans for Financial Reform.
“Today, the four biggest banks are 30% larger than they were five years ago,” she continued. “And the five largest banks now hold more than half of the total banking assets in the country. One study earlier this year showed that the Too Big to Fail status is giving the 10 biggest U.S. banks an annual taxpayer subsidy of $83 billion.”
The speech was given to promote passage of the 21st Century Glass-Steagall Act put forth by Warren along with Senators John McCain (R-Ariz.), Maria Cantwell (D-Wash.), and Angus King (I-Maine).
The Act, according to Warren, would “make banking boring” and reinstate many of the protections found in the original Glass-Steagall legislation including walling off many of the riskier banking activities like investment banking, swaps dealing and private equity activities as well as eliminate banks’ ability to rely on federal depository insurance as a “backstop for high-risk activities.”
Further, the legislation would dismantle the “behemoths” so they would no longer be “too big to fail, or for that matter, too big to manage, too big to regulate, too big for trial, or too big for jail.”
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