WASHINGTON — Two senators, one from each party, called Wednesday for breaking up large financial firms that perform both commercial and investment banking, adding a wrinkle to already difficult talks in the Senate on how to regulate Wall Street.
Sens. John McCain, the former Republican presidential candidate from Arizona, and Sen. Maria Cantwell, a Washington Democrat, introduced legislation that would prohibit commercial banks from undertaking brokerage activities.
Such a ban would strike directly at such institutions as Goldman Sachs, JPMorgan Chase, Citigroup, Bank of America and Wells Fargo, which engage in commercial and investment banking.
Democrats introduced a similar bill in the House on Wednesday.
“Banks need to be lending to small businesses and homeowners, not fueling risky Wall Street investment schemes,” McCain said.
The Senate proposal, bolstered with McCain’s backing, comes as the Senate Banking Committee seeks to bridge differences within the committee on a sweeping overhaul of financial regulations.
Though the House passed its own sprawling regulatory bill last week, the Senate is not expected to have one finished until March.
The Associated Press
