U.S. Senate rejects plan to limit bank size, debt

[Joanne98]

LOS ANGELES (MarketWatch) -- The U.S. Senate voted 61-33 Thursday to reject a financial reform proposal that would have limited the size and leverage loads of banks, reports said. The plan, offered by Sen. Sherrod Brown, D-Ohio, and Ted Kaufman, D-Del., would have led to the break up of six of the nation's largest banks, Reuters reported. The proposal had faced strong opposition from the financial industry.

http://www.marketwatch.com/story/us-senate-rejects-plan-to-limit-bank-size-debt-2010-05-06-2127100

[Scuba]

1. Must be will of the people, right?

[jschurchin]

2. Did you really expect

anything less. Is it any wonder why more and more Americans are losing faith in our government. I have become convinced that our so called, "representatives" represent the financial industry and NOT the people. Our government has become corrupted by Corporate America, and it is only they, that they serve.

[raccoon]

3. Why doesn't that surprise me? Rec'd. nt

[bossy22]

4. Good

i know saying this isnt a popular feeling around here but the truth is this legislation is short sighted and is nothing more than "revenge". I'm all for smart financial reform and regulation the problem is that limiting the size of banks can hurt our banking industry in the future. The truth is that we need big banks in this country; so that big companies can borrow money. If GE needs a $2 billion loan its not going to get it from a local savings bank. What will happen is that these companies would then start to do their banking with foreign banks.

I know many people on this board are angry about what these firms did to ruin the economy; i know i am. But we can't cut off our nose to spite our face.

[fasttense]

5. Monopolies should borrow money only from other monopolies?

We need big banks for monopolies to borrow money? I guess one monopoly borrowing from another monopoly is the idea?

Why can't a monopoly like GE borrow some from this bank and some from that bank? So, they go to London to borrow, maybe London will keep them there. We can only wish it were that easy to get rid of GE.

No, the legislation was a good idea but the congress was not going to pass it, they are bought and sold by Goldman just as easily as any CDF.

Don't you see? It is all set up to happen all over again. The next big crash will require bailouts to banksters yet again. Nothing has changed, nothing is different. Wash, rinse, repeat.