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As sponsoring Sen. Bernie Sanders (I-VT) puts it, this bill: \"is designed to break up financial institutions that are\nso big they create the risk of blowing up the American or global economy.\"

This bill would create a list of entities deemed “Too Big To Fail” — including U.S. bank holding companies that have been identified as systemically important banks by the Financial Stability Board. Think Citigroup, Goldman Sachs, Bank of America, and similar institutions.

The list would be compiled by the Financial Stability Oversight Council and sent to the Dept. of the Treasury. The Secretary of the Treasury would then:

Break up those entities so their failure could no longer have a catastrophic effect on the U.S. or global economy without a taxpayer bailout.
Submit the list to Congress and the President.

Any entity on the list would not be able to use or access credit advances from the Federal Reserve, the Federal Reserve’s discount window, or any program or facility made available under the Federal Reserve Act. This includes asset purchases, temporary or bridge loans, government investments in debt or equity, and \"capital injections\" (i.e. bailouts) from any federal institution.

Insured financial institutions and the entities that own them would be prohibited from using insured deposits to fund:

Activities related to hedging that are not directly related to commercial banking activities at the insured bank;
Any use of derivatives for speculative purposes;
Activities related to the dealing of derivatives;
Any other form of speculative activity specified by regulators.

The above limitations also apply to entities on the list in order to prevent insured deposits from being put at risk, or creates a risk of loss to the Federal Deposit Insurance Corporation’s (FDIC) Deposit Insurance Fund.

","official_title":"A bill to address the concept of \"Too Big To Fail\" with respect to certain financial entities.","short_title":"Too Big To Fail, Too Big To Exist Act","popular_title":null,"short_summary":"Too Big to Fail, Too Big to Exist Act\n\n This bill directs the Financial Stability Oversight Council to compile and submit to the Secretary of the Treasury a list of entities that the Council deems Too Big To Fail (List), including U.S. bank holding companies the Financial Stability Board has identified as systemically important banks.\n\nThe Secretary of the Treasury shall: (1) submit the List to Congress and the President, and (2) break up entities on the List so that their failure would no longer cause a catastrophic effect upon the U.S. or global economy without a taxpayer bailout.\n\nAny entity on the List may not use or have access to advances from any Federal Reserve credit facility, the Federal Reserve discount window, or any program or facility made available under the Federal Reserve Act, including asset purchases, temporary or bridge loans, government investments in debt or equity, or capital injections from any federal institution.\n\nNo insured depository institution on the List, ...","summarized":true,"cost":null,"cost_commentary":"A CBO cost estimate is unavailable.","impact":"Taxpayers, financial institutions found to be “Too Big To Fail”, the Financial Stability Oversight Council and the Financial Stability Oversight Board, the Dept. of the Treasury, Congress, the Secretary of the Treasury, and the President.","argument_for":"Taxpayers should never again be left footing the bill if the largest banks fail and threaten to bring the entire economy down with them. 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Breaking Up Banks That Are "Too Big to Fail"