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Bankers Push Back Against Bernie Sanders' 'Too Big To Fail' Legislation

Though it stands virtually no chance of passage in the GOP-controlled Congress, the bill has industry leaders fretting.

Poor bankers. It must be so stressful, worrying about Democrats cutting into their insane profit margins! Hopefully this campaign can give them something to worry about. The Hill:

Wall Street is worried that Sen. Bernie Sanders’s vigorous calls for banking industry reform will pull Hillary Clinton to the left, as the two presidential candidates battle for the 2016 Democratic nomination.

Sanders (I-Vt.) last week unveiled new legislation designed to break up the nation’s largest banks, declaring that “if an institution is too big to fail, it is too big to exist.”

Though it stands virtually no chance of passage in the GOP-controlled Congress, the bill has industry leaders fretting.

“The prospects of it becoming law are nil,” said one banking lobbyist, who described Sanders’s legislations as “shrill, bombastic and misaligned.”

“But we care about whether this impacts Hillary and whether she’ll try to pander to the far left.”

Business and banking groups, and their lobbying forces on K Street, are quickly lining up against the legislation.

“Misses the mark,” said Tom Quaadman, vice president of the U.S. Chamber Center for Capital Markets Competitiveness.

“I fully expect Senator Sanders’s third attempt to break up banks to have the same impact as the previous two: zero,” echoed Tony Fratto, a partner at Hamilton Place Strategies, which does communications work with big banks.

Despite the vocal opposition from the business community, Sanders’s ability to activate progressive outside groups could mean he may be able to move Clinton to the left — even if, as conventional wisdom says, he poses no real threat to the former secretary of State’s eventual nomination.

Sanders’s rhetoric signals that, seven years after the 2008 economic collapse, progressives still see tapping into anger about the taxpayer bailouts to big banks as a winning political strategy.

“When it comes down to it — he’s doing this not just because he’s trying to demonize the industry but this populist stuff is popular with his base,” a second banking lobbyist said.

Damn right it is. I wonder whose fault that is?

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