Today, the six largest U.S. financial institutions have assets of more than $12.2 trillion, or nearly two-thirds of the nation’s gross domestic product. Six major financial institutions hold nearly 30 percent of all mortgages, control nearly 90 percent of all derivatives held in financial institutions and hold nearly than 40 percent of all bank deposits in the United States. Sen. Sanders believes we should break up these giant financial institutions that pose a systemic risk to the financial system and the economy as a whole.

While Wall Street bankers continue to gamble with other people’s money, sooner or later, when their bets go wrong, they will come back to the American people to be bailed out again. The last bailout included a staggering $16 trillion in total financial support from the Federal Reserve to every major financial institution in the country, as well as a number of corporations, wealthy individuals and central banks throughout the world.

Sen. Sanders introduced the Too Big to Fail, Too Big to Exist Act to break up banks, hedge funds, insurance companies and other financial institutions larger than three percent of Gross Domestic Product. This bill ensures that no financial institution would be so large that its failure would send the world economy into crisis. Wall Street would again be a part of the productive economy, making loans to small and medium sized businesses and growing the economy, not an island onto itself gambling trillions on risky derivatives.

Senator Sanders also introduced the Loan Shark Prevention Act, legislation to prevent financial institutions from ripping off Americans by charging sky-high interest rates and outrageous fees. This legislation would establish a national usury rate of 15 percent on credit cards and other consumer loans, providing parity with credit union loans. It would end the absurdity of banks charging some consumers 25 percent interest while they can borrow from the Federal Reserve for a quarter of a percent.