US govt urged to curb size of finance firms

WASHINGTON: Two key US lawmakers endorsed the idea of the government restricting not just the risks taken by big financial firms, but also their sheer size, echoing proposals being heard in Europe.

The chairmen of two powerful US House of Representatives panels signaled a willingness among Democrats in Congress to assert regulatory power to break up large firms and prevent threats to economic stability from financial institutions becoming "too big to fail."

That could have major consequences for financial giants ranging from Goldman Sachs and JPMorgan Chase to Morgan Stanley and Bank of America, all prominent survivors of last year's financial crisis.