Compliance

10:59 AM
Phil Albinus
Phil Albinus
Commentary
Connect Directly
Twitter
RSS
E-Mail
50%
50%

Sandy Weill: Break Up the Banks

The man who created the modern bank supermarket and shattered Glass-Steagall thinks the banks are too big and should be broken up.

Dr. Frankenstein has some regrets, it seems.

Sandy Weill, the visionary former CEO of Citigroup who built the largest banking firm back in the 1990s, thinks that today's investment and retail banks are too big and should be broken up.

In an incredible interview on CNBC this morning, the soft-spoken Weill said, "I'm suggesting that they be broken up so that the taxpayer will never be at risk, the depositors won't be at risk, the leverage of the banks will be something reasonable."

In the video below, fast forward to the 5:00 mark for this gem:

I want to see us to be a leader and what we are doing now is not helping.

The world changes and the world we live in is different than the world we lived in 10 years ago. And I think one has to think about what this world is about. There are a lot of things in Silicon Valley that do not work […] But there is no other place in the world where you see the creativity that you see in the United States today. And I'd like to see that back in the financial business and I don't see that happening.

Later on, as the incredulous CNBC anchors try to make sense of what they are hearing, the retired Weill drops this truth bomb:

I think too big to fail can be handled.

Whether this changes anything, President Obama has a new talking point on the campaign trail.

Phil Albinus is the former editor-in-chief of Advanced Trading. He has nearly two decades of journalism experience and has been covering financial technology and regulation for nine years. Before joining Advanced Trading, he served as editor of Waters, a monthly trade journal ... View Full Bio
Comment  | 
Print  | 
More Insights
More Commentary
5 Tips to Save the Wall Street Datacenter
Though cloud computing and SaaS are all the rage, there is still a need for proprietary Wall Street datacenters, as long as they are run efficiently.
Preventive Measures for Post-Interview Anxiety
Most professionals leave interviews thinking that it went well, and then they wait... and wait. The Caring Recruiter has a cure for the typical post-interview trauma.
Leaving Out the Welcome Mat for Financial Services Hackers
Everyone knows the financial services industry is a prime target for hackers. Despite the dangers, many applications have software vulnerabilities that expose real risks.
4 Surprising Ways Firms Think About Data Security Costs
Almost 28% of firms are willing to bear the cost of some financial losses due to cybercrime, because it's less than the cost of upgrading IT systems.
CIO + CFO Doesn’t Equal Mars Vs. Venus
From my decades of experience, CIOs and CFOs have more in common than you may think.
Register for Wall Street & Technology Newsletters
White Papers
Current Issue
Wall Street & Technology - July 2014
In addition to regular audits, the SEC will start to scrutinize the cyber-security preparedness of market participants.
Video
Stressed Out by Compliance, Reputational Damage & Fines?
Stressed Out by Compliance, Reputational Damage & Fines?
Financial services executives are living in a "regulatory pressure cooker." Here's how executives are preparing for the new compliance requirements.