Democratic U.S. Senator Sherrod Brown of Ohio is co-sponsoring bi-partisan legislation calling for the end of federal subsidies for big banks.
Louisiana Republican David Vitter is a co-sponsor. Brown says the "too big to fail" guarantee has allowed large banks to lend risk-free and at lower rates than regional and community banks. He says the Terminating Bailouts for Taxpayer Fairness Act will create a level playing field by ending big bank subsidies and requiring them to have adequate capital to back up their liabilities.
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Brown says the six largest banks have grown since the financial crisis, and several are nearly 2 trillion dollars larger than they were then. Spokespeople for the banks say their size makes them more efficient, allowing for more lending. They say the legislation would create a competitive disadvantage.