Too Big To Fail meets Too Much Common Sense

Over at the Baseline Scenario, they have published the text of a bill by Senator Sanders of Vermont to break up the "Too Big to Fail" financial institutions. It's well worth the time to link over and read - short, sweet, and to the point. Wish all federal legistation were thus. Once you read it, use the imbedded link to go to Senator Sanders' website and sign his petition. Then email your Senators and tell them to support the bill.

UPDATE:
This AM I sent the follow email to each mof my Senators, and my Congressman. Fell free to crib the text for your own use, changing the names as appropriate:

Senator ________,

As you may be aware, Senator Sanders of Vermont has introduced a bill that would direct Treasury to break up the "too big to fail" banks and financial institutions that continue to imperil our financial sector. The Bill reads:

A BILL
To address the concept of ‘‘Too Big To Fail’’ with respect to certain financial entities.
1 Be it enacted by the Senate and House of representa-
2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.
4 This Act may be cited as the ‘‘Too Big to Fail, Too
5 Big to Exist Act’’.6
SEC. 2. REPORT TO CONGRESS ON INSTITUTIONS THAT
7 ARE TOO BIG TO FAIL.
8 Notwithstanding any other provision of law, not later
9 than 90 days after the date of enactment of this Act, the
10 Secretary of the Treasury shall submit to Congress a list

2
1 of all commercial banks, investment banks, hedge funds,
2 and insurance companies that the Secretary believes are
3 too big to fail (in this Act referred to as the ‘‘Too Big
4 to Fail List’’).
5 SEC. 3. BREAKING-UP TOO BIG TO FAIL INSTITUTIONS.
6 Notwithstanding any other provision of law, begin-
7 ning 1 year after the date of enactment of this Act, the
8 Secretary of the Treasury shall break up entities included
9 on the Too Big To Fail List, so that their failure would
10 no longer cause a catastrophic effect on the United States
11 or global economy without a taxpayer bailout.
12 SEC. 4. DEFINITION.
13 For purposes of this Act, the term ‘‘Too Big to Fail’’
14 means any entity that has grown so large that its failure
15 would have a catastrophic effect on the stability of either
16 the financial system or the United States economy without
17 substantial Government assistance.

Introduced by Senator Bernie Sanders of Vermont. That’s the entire bill.

I urge you, in the strongest terms, to support this bill. No company, no private interest, has the right to grow so big as hold our economy hostage. No company has the right to take private risks with its money, and expect public bailouts when those risks fail. You have the obligation, as a U.S. Senator, to help us, your constituents, combat those companies. Please co-sponsor this bill, and work with your Senate and House Colleagues to make this important change in our national financial system.

Thank you.