WASHINGTON -- Sen. Elizabeth Warren (D-Mass.) warned in a speech Tuesday that the problem of banks considered "too big to fail" has only gotten worse since the 2008 financial crisis, potentially sowing the seeds of a future crisis.
"Today, the four biggest banks are 30 percent larger than they were five years ago. And the five largest banks now hold more than half of the total banking assets in the country," Warren said in a keynote address at a conference on the future of financial reform put on by the Roosevelt Institute, a think tank. "Who would have thought five years ago, after we witnessed firsthand the dangers of an overly concentrated financial system, that the 'too big to fail' problem would only have gotten worse?"
Warren urged the passage of a new Glass-Steagall Act that would separate commercial and investment banking. The Depression-era legislation was repealed in 1999 with huge bipartisan majorities, allowing depository institutions to undertake riskier securities trading. Warren, along with Sens. John McCain (R-Ariz.) and Maria Cantwell (D-Wash.) have called to revive the legislation, but it stands little chance of passing.
Read more @: Elizabeth Warren: 'Too Big To Fail' Is Worse Than Before Financial Crisis
This is an outrage. We went the total wrong direction on this. Instead of ending this too big to fail ****, its gotten worse! We need to bring back Glass Stegal.