Financial Debate Renews Scrutiny On Size Of Banks

Financial Debate Renews Scrutiny On Size Of Banks

As the debate over the regulatory overhaul heated up this week, a populist minority in both Congress and the Fed requested a revisit to the size issue. They would like to go beyond a provision in the bill, suggested by Paul A. Volcker, the former Fed chairman, and supported by President Obama, that would seek to keep banks from growing any larger but not force any to shrink.

"By splitting up these megabanks, we by definition will make them smaller, safer and more manageable," Senator Edward E. Kaufman Jr., Democrat of Delaware, said in a speech Tuesday.

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