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

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