NACBA
05-14-2015, 04:22 AM
http://s1.ibtimes.com/sites/www.ibtimes.com/files/styles/v2_article_large/public/2015/05/13/rtr4sxvo.jpg?itok=siQZNmlT
After the financial crisis, protesters nationwide filled streets with the chant, “Banks got bailed out, we got sold out.” The sentiment still resonates in Congress. On Wednesday, Sens. Elizabeth Warren, D-Mass., and David Vitter, R-La., proposed curbs on the Federal Reserve’s ability to extend emergency financing to ailing firms.
The bipartisan legislation comes as some lawmakers argue the 2010 Dodd-Frank Act was a regulatory overreach, while others worry it failed to end the era of “too big to fail” banks. A day after Sen. Richard Shelby, R-Ala., unveiled legislation that would roll back some key Dodd-Frank policies, Warren and Vitter have taken the opposite tack.
"It's no secret that Too Big to Fail is still around,” Vitter said in a statement. “If another financial crisis happened tomorrow -- and that's still a real risk -- nobody doubts that megabanks would be calling on the federal government to bail them out again.”
The Fed’s bailout powers, which were dialed back by the Dodd-Frank, would be further constrained under the bill, called the Bailout Prevention Act.
http://www.ibtimes.com/elizabeth-warrens-next-crusade-clamping-down-federal-reserves-too-big-fail-bailouts-1920823
After the financial crisis, protesters nationwide filled streets with the chant, “Banks got bailed out, we got sold out.” The sentiment still resonates in Congress. On Wednesday, Sens. Elizabeth Warren, D-Mass., and David Vitter, R-La., proposed curbs on the Federal Reserve’s ability to extend emergency financing to ailing firms.
The bipartisan legislation comes as some lawmakers argue the 2010 Dodd-Frank Act was a regulatory overreach, while others worry it failed to end the era of “too big to fail” banks. A day after Sen. Richard Shelby, R-Ala., unveiled legislation that would roll back some key Dodd-Frank policies, Warren and Vitter have taken the opposite tack.
"It's no secret that Too Big to Fail is still around,” Vitter said in a statement. “If another financial crisis happened tomorrow -- and that's still a real risk -- nobody doubts that megabanks would be calling on the federal government to bail them out again.”
The Fed’s bailout powers, which were dialed back by the Dodd-Frank, would be further constrained under the bill, called the Bailout Prevention Act.
http://www.ibtimes.com/elizabeth-warrens-next-crusade-clamping-down-federal-reserves-too-big-fail-bailouts-1920823