It’s been a bleak winter for financial reformers in the United States. Legislators have introduced, and in some cases passed, a number of bills that aim to gut various components of the Dodd-Frank Act. But one Congressman recently introduced a bill that makes reform prospects for the spring look a whole lot better.
Last week, Rep. Michael Capuano introduced The Subsidy Reserve Act of 2015, also known as H.R. 888. The bill should be welcomed by those of us who are tired of seeing our taxes diverted from critical investments in education, infrastructure, and healthcare in order to bail out or subsidize big banks.
The bill will require U.S. banks with over $500 billion in assets to calculate and accumulate capital equal to the amount of the market subsidy they receive from taxpayers. The Federal Reserve Board, Financial Stability Oversight Council and the Office of Financial Research would “establish…
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