In a stunning reversal, a former big bank CEO who crusaded for policies that helped create the so-called "too-big-to-fail" banks now says we need to break up the banks.
"What we should probably do is go and split up investment banking from banking, have banks be deposit takers, have banks make commercial loans and real estate loans, and have banks do something that's not going to risk the taxpayer dollars, that's not going to be too big to fail," former Citigroup Chairman and CEO Sanford "Sandy" Weill told CNBC on Wednesday morning.
It's a shocking statement coming from Weill, who was responsible for turning Citi into one of the largest banks in the world. During his tenure, he bought up one financial institution after another and orchestrated the merger of Travelers Group and Citibank in 1998--at the time, the largest merger in history. He retired as CEO of Citigroup in 2003 and stepped down as chairman in 2006.
"Is Sandy Weill now considered a 'born again banker'?" Joseph Saluzzi, co-founder of Themis Trading and prominent Wall Street critic, tweeted Wednesday morning when Weill's statements made the rounds.
Weill was pivotal in lobbying for the succesful repeal of the Glass-Steagall Act in 1999, a 66-year-old law that had separated commercial banking from investment banking.
Some blame the financial crisis, in part, on that appeal.
Fmr CEO of Citigroup Sandy Weill: time to break up the banks
Fmr CEO of Citigroup Sandy Weill: time to break up the banks
http://www.huffingtonpost.com/2012/07/2 ... 01274.html
Men often oppose a thing merely because they have had no agency in planning it, or because it may have been planned by those whom they dislike.
-Alexander Hamilton
-Alexander Hamilton
Re: Fmr CEO of Citigroup Sandy Weill: time to break up the b
Good news. Seems to me that this ought to be the No1. issue in the presidential elections, any elections anywhere. But will it?
Deep down I'm very superficial
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Re: Fmr CEO of Citigroup Sandy Weill: time to break up the b
hahaohwow.jpgParodite wrote:But will it?
“There are a lot of killers. We’ve got a lot of killers. What, do you think our country’s so innocent? Take a look at what we’ve done, too.” - Donald J. Trump, President of the USA
The Kushner sh*t is greasy - Stevie B.
The Kushner sh*t is greasy - Stevie B.
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Re: Fmr CEO of Citigroup Sandy Weill: time to break up the b
I obviously agree, but that prick has got some serious goddamn nerve.
"The fundamental rule of political analysis from the point of psychology is, follow the sacredness, and around it is a ring of motivated ignorance."
Re: Fmr CEO of Citigroup Sandy Weill: time to break up the b
YMix wrote:hahaohwow.jpgParodite wrote:But will it?
I share that feeling
Deep down I'm very superficial
Re: Fmr CEO of Citigroup Sandy Weill: time to break up the b
despite the king cnut example we have all witnessed (GFC et all) its politically impossible to admit that the politicians and bankers are just bumbling twats like the rest of us.
aka, they cant break up the banks because thats an admission that all the promises of stability and control are lies, you only play the safety through diversity card if you accept that everyone is fallable and noone should be given these levels of control over us all.
id say the left wing calls for more control, more centralisation are more likely than a breakup and more competition... nationalised banks that are then abused for pork barrelling the incumbent agenda.
aka, they cant break up the banks because thats an admission that all the promises of stability and control are lies, you only play the safety through diversity card if you accept that everyone is fallable and noone should be given these levels of control over us all.
id say the left wing calls for more control, more centralisation are more likely than a breakup and more competition... nationalised banks that are then abused for pork barrelling the incumbent agenda.
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Re: Fmr CEO of Citigroup Sandy Weill: time to break up the b
Not really, it's the popular thing to say. All upside and no downside.Juggernaut Nihilism wrote:I obviously agree, but that prick has got some serious goddamn nerve.
Censorship isn't necessary
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Re: Fmr CEO of Citigroup Sandy Weill: time to break up the b
I didn't mean that he had courage. I meant that he had nerve the way a retired bar owner, having sold his establishment and now living comfortably, would have nerve by agitating for prohibition.Mr. Perfect wrote:Not really, it's the popular thing to say. All upside and no downside.Juggernaut Nihilism wrote:I obviously agree, but that prick has got some serious goddamn nerve.
"The fundamental rule of political analysis from the point of psychology is, follow the sacredness, and around it is a ring of motivated ignorance."