The banking industry has been reeled in by President Obama. When he came into office the banking industry was running loose deregulated and offering predatory loans to those who could least afford to take chances with their money. But a major culprit in introducing “big banking” has turned over a new leaf.
Sandy I. Weill is the former CEO and Chairman of Citibank, one of the largest banks in the world, and the inventor of the “financial supermarket.” But Weill has been thinking about his theories since leaving Citibank and suggests that it may not be a great idea that investing, lending, and personal banking should be combined, according to CNBC. Weill, in an interview with CNBC said:
“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.”
It’s a surprising admission on behalf of Weill because he believed wholeheartedly in the mixture of investment banking with private banking at the time he reigned supreme over Citibank. But now he feels that the mix is devastating the financial system of America and that banks will never rebuild their reputations of security with the present method.
“I’m suggesting that they be broken up so that the taxpayer will never be at risk, the depositors won’t be at risk, the leverage of the banks will be something reasonable, and the investment banks can do trading…they can make some mistakes, but they’ll have everything that clears with each other every single night so they can be mark-to-market,” Weill said.
Weill also mentioned that the banks must be transparent and end the practice of not documenting some transactions:
“There should be no such thing as off balance sheet.”
You damn right! Everything should be disclosed when it comes to how our money is being handled. We didn’t even realize that half of the banking tricks Weill has informed us of were even happening. Weill must have a reason for coming out with this information at this time. Is he giving us a heads up on a future banking downfall for us common folk?
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