Bernie Sanders Wants to Break Up Big Banks. Here's Why
You might think people would have forgotten, but Americans are still upset about the 2008 bailouts of U.S. banks and the economic crisis caused by their reckless behavior. That's why the issue is now central to political debate as the presidential primaries get going.
Democrats Bernie Sanders and Hillary Clinton are offering alternative ways to shrink the biggest U.S. banks. Republicans Marco Rubio and Ted Cruz have attacked post-crisis rules for codifying ``too big to fail."
The biggest banks are even bigger today than before the crisis. There were mergers as the relatively stronger ones were prodded by the government to absorb failing rivals. And even with all the new rules intended to discourage bigness, only two have shrunk relative to their pre-crisis size. So what's changed? Watch this video to find out if the taxpayer might once again have to pick up the tab next time big banks collapse.