WASHINGTON, Nov. 16 (UPI) -- The Financial Services Forum, a lobby group, has said it opposes an effort to give the U.S. government permission to break up large firms.
Many of the federal efforts to intervene in the current financial crisis was set up under the premise that some companies are "too big to fail," meaning they are so important that a failure at one would ripple through the financial system, The Hill newspaper reported Monday.
Now a bill being drafted by Reps. Paul Kanjorski, D-Pa., and Ed Perlmutter, D-Colo., would give regulators permission to break up large firms, even healthy ones, in part by separating commercial and investment banking businesses.
The Financial Services Forum represents 18 large firms and said risks do not increase due to the size of the company. In addition, larger firms can offer business options that smaller banks cannot, the Financial Services Form said.
