That’s why I’ve reintroduced the SAFE Banking Act, which would end “too big to fail” once and for all by placing sensible size limits on our nation’s megabanks and ensuring that if they gamble, they have the resources to cover their losses. It would prevent any one bank from controlling more than 10 percent of federally insured deposits or assuming more than 10 percent of the U.S. financial sector’s liability. Under the bill, no bank could grow to more than 2 percent of the nation’s gross domestic product – with these limits reevaluated as the economy grows. Moreover, banks could not borrow more than $10 for every $1 of shareholder equity. These size limits would only affect the six largest Wall Street banks, who would have three years to downsize by selling assets or spinning off certain lines of business, as they see fit.
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