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Text of the Too Big to Fail, Too Big to Exist Act

This bill was introduced on April 9, 2013, in a previous session of Congress, but was not enacted. The text of the bill below is as of Apr 9, 2013 (Introduced).

II

113th CONGRESS

1st Session

S. 685

IN THE SENATE OF THE UNITED STATES

April 9, 2013

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

A BILL

To address the concept ofToo Big To Failwith 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, theSecretary of the Treasuryshall submit toCongressa list of all commercial banks, investment banks, hedge funds, and insurance companies that theSecretarybelieves are too big to fail, which shall include, but is not limited to, any United States bank holding companies that have been identified as systemically important banks by the Financial Stability Board (in this Act referred to as theToo 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, theSecretary of the Treasuryshall 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 termToo Big to Failmeans 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.