POLITICO Column: The angry pitchfork brigade bent on breaking up the nation’s largest banks now includes unlikely members George Will and Peggy Noonan. Republicans at times outflank liberals in their zeal to downsize financial giants. And CPAC hosted a session at its convention on the threat posed by mega-banks.
But turn down the bipartisan Beltway static, and the true signal is clear: There is virtually no chance any significant piece of legislation will pass Congress that would meaningfully reduce the size of the nation’s biggest banks or restrict their activities…
Here’s why: The White House has no desire to reopen any part of Dodd-Frank and believes too-big-to-fail will soon be a closed chapter. To admit otherwise would be a huge political walk-back. Some Republicans have warmed to the idea of bank breakups, but they’re nowhere close to agreement on how to do them. And the Democrats most associated with the idea, including Sen. Elizabeth Warren (D-Mass.), remain highly polarizing figures not likely to create a broad legislative coalition… (more)
