The bipartisan proposal “ends Too Big To Fail subsidies or funding advantages for Wall Street mega-banks with more than $500 billion in assets.”
In order to stop the financial bleeding, the U.S. government voted to rescue the big banks rather than allow them to fail and take our economy with them. Ever since, big banks have only gotten bigger on the premise that if they fail again, the government will bail them out.
But an amendment was offered as an attachment to the Senate budget bill and it received unanimous support; 99-0. The U.S. Senate voted to strip “too big to fail” banks of the taxpayer subsidies.
Two reports indicate that the banks were rolling in taxpayer dollars that they didn’t need. In February, Bloomberg News reported that the banks made an estimated $83 billion a year. But that number could be even higher. In March top banking analyst, Chris Whalen estimated that big banks rake in more than $780 billion of government subsidies every year. Banks have been making trillions of dollars over the last few years even though they didn’t need the money.
Now it falls to the House Republicans to approve the bill and send it to the President. Considering the conservative obsession with forcing the Ryan Budget upon America, passage of the Senate bill looks grim. Now would the time for everyone to get on the phone with their representative in Congress to demand passage of the Senate budget.