House Committee OKs Breakup Of Too-Big-To-Fail Cos.

Law360, New York (November 18, 2009, 4:47 PM EST) -- A key U.S. House of Representatives committee on Wednesday approved a plan to break up financial institutions deemed a threat to the financial system as a whole, even those that are deemed to be healthy and well capitalized.

The House Financial Services Committee voted 38-29 to approve the amendment to the Financial Stability Improvement Act, the bill that includes resolution authority for large, interconnected financial institutions as well as plans for systemic risk regulation.

The measure was introduced by Rep. Paul Kanjorski, D-Pa., chairman of the...
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