“Sens. David Vitter (R-La.) and Sherrod Brown (D-Ohio) introduced the amendment, which ends “Too Big To Fail” subsidies or funding advantages for Wall Street mega-banks with more than $500 billion in assets. Their amendment was adopted on a 99-0 vote Friday night.
“There are at least three independent studies recently that underscore that ‘Too Big To Fail’ is still alive and well,” Vitter said. “’Too Big To Fail’ policies are creating an unfair playing field for smaller banks.”
Brown and Vitter argue that the Dodd-Frank financial reform law didn’t do enough to keep large banks in check. They say that if banks are still “Too Big To Fail,” they have an unfair advantage and are able to borrow more money since lenders believe they would be bailed out if a risky investment fails.