Bad News For Goldman: Senator Sanders Proposes Legislation Naming TBTF Firms, Demands They Be Broken Up Within A Year

Tyler Durden's picture

Following up on the Kanjorski news earlier, it is now Senator Bernie Sanders who is set to anger PETA with his desire to disembowel pristine examples of cephalopodean vampyrrhic perfection. The Senator has revealed legislation which requires the AIG-bailout mastermind Tim Geithner to name banks "whose collapse may shake the economy" and break up these firms in a year. Look for some serious flight or flight sympathetic/parasympathetic ganglia to be going like gangbusters in the dorsal column of various bloodsucking marine creatures. After all who'd a thunk that the willing victims of daily monetary rape would have the guts to stand up for themselves (and if things are accelerating now, wait until Main Street learns that the average Goldman employee is getting paid about $750,000 for 2009).



More from Bloomberg:

The legislation would give Geithner 90 days to list the
commercial and investment banks, hedge funds and insurance
companies deemed “too big to fail.” Those firms would be
broken up within a year, he said. Representative Paul Kanjorski,
a Pennsylvania Democrat, is considering a measure in the House
that would break up large financial firms

As Zero Hedge has long been recommending, firms that are TBTF or that have attained monopoly status in various market verticals (of which Goldman Sachs is a shining example), deserve to be split into their component pieces, and/or receive comparable anti-trust intervention. At the end of the day, what was good for Ma Bell in the 1980's, should be perfectly suitable for bloodsucking parasites.

Yet the inevitable push to gut any such proposals seems to not be generating much steam, even with Barney Frank's complicity:

Kanjorski, chairman of a House Financial Services Committee
panel on capital markets, this week said he was preparing a
measure giving the government power to break apart large firms.

“Nowhere in the world in the future will there be gigantic
tsunamis coming out of nowhere and striking the entire world’s
economy,” he said on Nov. 4.

The Kanjorski measure would amend Chairman Barney Frank’s
draft legislation that creates a regulator council to monitor
the economy and firms for systemic risk. The committee today
considered proposals to change Frank’s measure, and the chairman
has said a final vote by members is scheduled Nov. 20.

“Discussion of breaking up large financial institutions
that pose systemic risk to the market is gaining traction on the
Hill,” FBR Capital Markets analysts led by Paul Miller said in
an investor note Nov. 4. “This legislation is currently in its
infancy, and Congress has a number of difficult questions to
answer before anything can move forward.”

And who is the most vocal opponent to such legislation: why the Federal Reserve of course, even though the Fed is not a topic of discussion here. But who is, is the Fed's holding company: one Galactic Government Sachs.

Federal Reserve Governor Daniel Tarullo said Oct. 21 the
idea of breaking up large institutions is impractical, calling
it “more a provocative idea than a proposal.” Instead, he said
any firm that may pose a risk should be subject to stricter
oversight. Former Fed Chairman Alan Greenspan on Oct. 15 said
regulators should consider breaking up systemically risky firms.

Don't worry Fed, your time is coming. There will be much greater things you need to worry about than the survival of your various Wall Street masters...Just give it some time.

h/y Richard