Sandy Weill, the former Citigroup chairman and CEO, told CNBC today that it’s time to break up the big banks to improve the country’s financial performance and safeguard against institutions that are too big to fail. “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,” he said via an article in the Huffington Post.
Some are now calling Weill the Great Born Again Banker.
But David Wessel, economics editor for The Wall Street Journal, disagrees. We need big banks if we are going to effectively compete in the global financial system.
Image courtesy of 401(K) 2012