by Bill Kavanagh: After the President's tough Cooper Union speech on financial reform, we're left with Senator Dodd's legislation— it helps in some ways, but doesn't stop "too big to fail" banks from dominating American finance for their own benefit, just as they did leading up to the meltdown. One sliver of hope for curbing future bubbles lies in a proposed amendment in the Senate, the Brown-Kaufman SAFE Banking Act. This legislation would break up the biggest of the megabanks and require limits on non-deposit liabilities. "Too big to fail" is just too big, say the sponsors of the amendment.
If you want to prevent the next meltdown from occurring, you can help by supporting the Brown-Kaufman amendment and making sure it gets an up or down vote. Call your Senators, Harry Reid, and the White House switchboard. Tell the folks answering that you are calling to make sure the SAFE Banking Act gets a chance to come to a vote on the Senate floor— and that without limiting bank size, financial regulation won't work.
What the hell, it's better than waiting for the bank lobbyists to kill the amendment without a fight, right?
(Kavanagh cross-posts at Bill's Big Diamond.)