From CNBC, Citigroup’s former and legendary Chairman and CEO Sandy Weill made news in an interview today with “Squawk Box.” Shorter message: Break up the big 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, 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.
Glass-Steagall Act was replaced by the Gramm-Leach-Bliley Financial Modernization Act of 1999, the House voting 362-57 to pass it, and in the Senate, 90-8, in a veto-proof majority. Pres. Bill Clinton signed it into law on November 12, 1999.
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Image from Occupy Congress.