Former Citigroup Chairman & CEO Sanford I. Weill, the man who invented the financial supermarket, called for the break up of big banks in an interview on CNBC Wednesday.
â€œWhat 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 thatâ€™s not going to risk the taxpayer dollars, thatâ€™s not too big to fail,â€ Weill told CNBCâ€™s â€œSquawk Box.â€
He added: â€œIf they want to hedge what theyâ€™re doing with their investments, let them do it in a way thatâ€™s going to be market-to-market so theyâ€™re never going to be hit.â€
He essentially called for the return of the Glassâ€“Steagall Act, which imposed banking reforms that split banks from other financial institutions such as insurance companies.
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