And I will strike down upon thee with great vengeance and furious anger those who attempt to poison and destroy my brothers. And you will know my name is the Lord when I lay my vengeance upon thee.So Rep. Paul Kanjorski (D-Backwoods, Pa.) has unveiled his homage to the Morgenthau Plan. His proposed amendment to the financial regulation reform package offers a simple solution to the "too big to fail" phenomenon: Stamp it out.
If Kanjorski gets his way, the government would be empowered to split up firms that are "too big to fail" even if they are in no danger of failing, as well as the power to keep firms that aspire to be "too big to fail" in their place, blocking mergers and keeping them from all of those highly-profitable enterprises that present a systemic risk.
Kanjorski, who last week announced his crusade against financial services firms with designs on "taking over the world," offered a fun new metaphor to justify his genocidal intentions.
"Financial firms that want to play in a casino need to have their own resources to cover their bets and not assume that tax dollars are available in reserve if their bets fail," he said.
Fair enough. The industry's not going to like it--"It will act as a strong disincentive for financial firms to grow," one said. Duh. That's the whole point--but who cares what those greedy wreckers think? Kanjorski's bill does have one fatal flaw, however. It includes no exemptions for those firms (well, that firm) that work with divine sanction and under His protection.
Do you really want to tussle with the righteous men (even a woman or two) doing the work of God here on earth, Mr. Kanjorski? Lloyd Blankfein is watching you closely, sir, and is not afraid to ask for a big favor from his Biggest Fan.
Kanjorski Proposes Breaking Up Firms That Pose Risks [Bloomberg]
Q.&A. With Kanjorski on Bank Breakup Plan [DealBook]