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Sandy Weill’s Change of Heart

By JLP | July 26, 2012

“What we should probably do is go 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,”

So Sandy Weill, the man who pushed hard for the end of Glass-Steigel when Citicorp and Travelers merged, is now thinking it would be best to break banks up.

Interesting.

My guess is that he won’t be giving back any of the money he accumulated in the lead up to the crisis that he helped create.

The above article closes with:

Thank you, Mr. Weill, for your courageous declaration. Why couldn’t you have made it a decade ago?

Exactly! Although, I’m not sure that this is a “courageous declaration” at this point in the game.

Also, while on google, looking for articles on this matter, I came across one that said Weill’s motivation may be that banks are worth more broken up. That would explain Weill’s change of heart.

Maybe this is Weill’s way of pulling the rug out from under Jamie Dimon, his protégé that he fired who went on to eventually manage JP Morgan Chase.

Topics: Banking | 1 Comment »


One Response to “Sandy Weill’s Change of Heart”

  1. Valkyrie Frost Says:
    July 27th, 2012 at 5:48 am

    Good catch! I missed this article.

    I truly mistrust this weasel!

    If he say’s it’s good for American taxpayers, you can bet he and his Wall St friends have other reasons for wanting a govt mandated break up.

    My guess, If the govt *forces* them to separate, you can bet your last dollar the commercial banks can be left holding the bag of bad MBS while the investment banks can quietly return to their over leveraged portfolios in equities.

    Then, the commercial banks would be left to take losses or fold as another round of bad mortgages completely implodes. The investment banks would then be liquid enough to not only survive, but have the capital to buy up the best properties at bargain basement prices and turn them rental.

    See this article here:
    http://www.newsdaily.com/stories/bre86i1aj-us-usa-housing-goldman/

    I’m all for reinstating Glass-Steagall, but the investment banks should be left holding all the investment instruments and the commercial banks holding depositors money left free and clear. Also, investment banks should be completely forbidden from investing in real estate ever again.

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