- Banking Bill Introduced
- April 30, 2013
- Law Firm: McDonald Hopkins LLC - Cleveland Office
As expected, this week Senator Sherrod Brown (D-OH) and Senator David Vitter (R-LA) introduced a banking reform bill aimed at financial firms with more than $500 billion in assets. The Brown/Vitter bill would require those firms to hold a minimum of 15 percent capital to cover for potential losses.
Brown and Vitter, who come from very different ends of the political spectrum, argue that this requirement protects taxpayers from being on the hook when “too big to fail” institutions are faced with steep losses.
The bill also requires mid-sized and regional banks to hold eight percent in capital to protect against losses. This eight percent is down from the 10 percent requirement that was in a draft version of the bill that leaked out earlier this month.
Analysts, and even supporters of the legislation, admit that the bill faces long odds of becoming law anytime soon.