Google Groups no longer supports new Usenet posts or subscriptions. Historical content remains viewable.
Dismiss
#Wall Street Legend Sandy Weill: Break Up the Big Banks
4 views
Skip to first unread message
3082 Dead
Jul 25, 2012, 6:21:08 PM7/25/12
to
http://www.cnbc.com/id/48315170
Wall Street Legend Sandy Weill: Break Up the Big Banks
Published: Wednesday, 25 Jul 2012 | 8:02 AM ET\
Former Citigroup Chairman & CEO Sanford I. Weill, the man who invented
the financial supermarket, called for the breakup of big banks in an
interview on CNBC Wednesday.
“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, have banks do something that’s not going to risk
the taxpayer dollars, that’s not too big to fail,” Weill told CNBC’s
“Squawk Box.”
He added: “If they want to hedge what they’re doing with their
investments, let them do it in a way that’s going to be mark-to-market so
they’re never going to be hit.”
He essentially called for the return of the Glass–Steagall Act, which
imposed banking reforms that split banks from other financial
institutions such as insurance companies.
“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, and the investment banks can do trading, they’re
not subject to a Volker rule (the Volcker rule explained), they can m ake
some mistakes, but they’ll have everything that clears with each other
every single night so they can be mark-to-market,” Weill said.
He said banks should be split off entirely from investment banks, and
they should operate with a leverage ratio of 12 times to 15 times of what
they have on their balance sheets. Banks should also be completely
transparent, Weill said, with everything on balance sheet. “There should
be no such thing as off balance sheet,” he said.
If banks hedge in any way, Weill added, positions should be mark-to-
market (mark-to-market explained) and cleared through an exchange.
Weill said that by breaking up banks, they would be “much& #8221; more
profitable.
"This is what all the regional banks do and everybody says buy regional
banks,” he said. “They'll just be bigger regional banks.”
Weill suggested that breaking up banks is the only way to rebuild the
financial industry’s reputation in the wake of recent scandals and
missteps.
“I want to see us be a leader, and what we’re doing now is not going to
make us a leader,” he said.
--
Subscribe:
zepps_essay...@yahoogroups.com
zepps_news...@yahoogroups.com
Unsubscribe:
zepps_essays...@yahoogroups.com
zepps_news-...@yahoogroups.com
Not dead, in jail or a slave? Thank a liberal!
Wall Street Legend Sandy Weill: Break Up the Big Banks
Published: Wednesday, 25 Jul 2012 | 8:02 AM ET\
Former Citigroup Chairman & CEO Sanford I. Weill, the man who invented
the financial supermarket, called for the breakup of big banks in an
interview on CNBC Wednesday.
“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, have banks do something that’s not going to risk
the taxpayer dollars, that’s not too big to fail,” Weill told CNBC’s
“Squawk Box.”
He added: “If they want to hedge what they’re doing with their
investments, let them do it in a way that’s going to be mark-to-market so
they’re never going to be hit.”
He essentially called for the return of the Glass–Steagall Act, which
imposed banking reforms that split banks from other financial
institutions such as insurance companies.
“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, and the investment banks can do trading, they’re
not subject to a Volker rule (the Volcker rule explained), they can m ake
some mistakes, but they’ll have everything that clears with each other
every single night so they can be mark-to-market,” Weill said.
He said banks should be split off entirely from investment banks, and
they should operate with a leverage ratio of 12 times to 15 times of what
they have on their balance sheets. Banks should also be completely
transparent, Weill said, with everything on balance sheet. “There should
be no such thing as off balance sheet,” he said.
If banks hedge in any way, Weill added, positions should be mark-to-
market (mark-to-market explained) and cleared through an exchange.
Weill said that by breaking up banks, they would be “much& #8221; more
profitable.
"This is what all the regional banks do and everybody says buy regional
banks,” he said. “They'll just be bigger regional banks.”
Weill suggested that breaking up banks is the only way to rebuild the
financial industry’s reputation in the wake of recent scandals and
missteps.
“I want to see us be a leader, and what we’re doing now is not going to
make us a leader,” he said.
--
Subscribe:
zepps_essay...@yahoogroups.com
zepps_news...@yahoogroups.com
Unsubscribe:
zepps_essays...@yahoogroups.com
zepps_news-...@yahoogroups.com
Not dead, in jail or a slave? Thank a liberal!
cc-scrutinizer
Jul 25, 2012, 8:42:43 PM7/25/12
to
On 7/25/2012 4:21 PM, 3082 Dead wrote:
> Wall Street Legend Sandy Weill: Break Up the Big Banks
Oh yeah, let's go back to S&Ls...
> Wall Street Legend Sandy Weill: Break Up the Big Banks
Sid9
Jul 25, 2012, 8:47:49 PM7/25/12
to
"cc-scrutinizer" <c...@ri.llo> wrote in message
news:juq3pu$nkd$5...@speranza.aioe.org...
> On 7/25/2012 4:21 PM, 3082 Dead wrote:
>> Wall Street Legend Sandy Weill: Break Up the Big Banks
>
>
> Oh yeah, let's go back to S&Ls...
No entity should be "too big to fail.
>> Wall Street Legend Sandy Weill: Break Up the Big Banks
>
>
> Oh yeah, let's go back to S&Ls...
Laws like the anti-monopoly laws of the early 20th Century should be put in
place
Certainly Glass/Steagall must be restored
JaxKayaker
Jul 25, 2012, 9:06:37 PM7/25/12
to
Sandy Weil is one of the architects of the financial crisis of the past decade. He almost destroyed Citibank in the process of trying to make it the LARGEST BANK IN THE WORLD....He has been gone from Citi for more than a decade now and it has still not recovered. When Sandy became the CEO of Citibank, employee benefits for all except executive management, at one time some of the best in the business, became almost non existent. Now for Sandy to say that banks should be smaller and broken up is almost laughable. I think he is getting a case of the guilts as he gets older. He may not have had to answer to anyone here but St Peter awaits.
0 new messages