Daily News: July 26, 2012

Former Citi CEO Weill Says Banks Should Be Broken Up

Bloomberg reported, based on a CNBC interview, that Sanford “Sandy” Weill, whose creation of Citigroup ushered in the era of U.S. banking conglomerates a decade before the financial crisis, said it’s time to break up the largest banks to avoid more bailouts.

Bloomberg quoted Weill as saying, “What we should probably do is go and split up investment banking from banking. Have banks do something that’s not going to risk the taxpayer dollars, that’s not going to be too big to fail.”

Bloomberg spoke with a FDIC board member and former head of the Kansas City Fed, who said, “There is finally a growing recognition among a wide range of market analysts, financial market participants and policy makers that the repeal of Glass-Steagall was a mistake. It’s time now to restrict banks to core services.”

To read the Bloomberg article, click here.

To read a related article that appeared on the Wall Street Journal, click here.