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S. 2746 (111th): Too Big to Fail, Too Big to Exist Act


The text of the bill below is as of Nov 5, 2009 (Introduced). The bill was not enacted into law.


II

111th CONGRESS

1st Session

S. 2746

IN THE SENATE OF THE UNITED STATES

November 5, 2009

introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs

A BILL

To address the concept of Too Big To Fail with respect to certain financial entities.

1.

Short title

This Act may be cited as the Too Big to Fail, Too Big to Exist Act.

2.

Report to Congress on institutions that are too big to fail

Notwithstanding any other provision of law, not later than 90 days after the date of enactment of this Act, the Secretary of the Treasury shall submit to Congress a list of all commercial banks, investment banks, hedge funds, and insurance companies that the Secretary believes are too big to fail (in this Act referred to as the Too Big to Fail List).

3.

Breaking-up too big to fail institutions

Notwithstanding any other provision of law, beginning 1 year after the date of enactment of this Act, the Secretary of the Treasury shall break up entities included on the Too Big To Fail List, so that their failure would no longer cause a catastrophic effect on the United States or global economy without a taxpayer bailout.

4.

Definition

For purposes of this Act, the term Too Big to Fail means any entity that has grown so large that its failure would have a catastrophic effect on the stability of either the financial system or the United States economy without substantial Government assistance.