Creator of Super Mega-Banks: “Oh My God, I’ve Created a Monster!”
It’s never too late for people to change their ways and make amends. Or as Christians like to say (whether they mean it or not), “hate the sin, love the sinner.” And sometimes a convicted burglar will make up for his crime by showing people how to burglar-proof their homes.
Sandy Weill was the main instigator behind the repeal of the Glass-Steagall Act in the late 1990s. The repeal of Glass-Steagall enabled the Crash of 1929 to resurface as the Crash of 2008. Sandy Weill was the CEO of Travelers Group, and he wanted to merge his company with Citicorp (now Citigroup). When he found out that this merger was illegal under the Glass-Steagall Act, he instructed his government prostitutes (Congress and then-Treasury Secretary Bob Rubin) to repeal Glass-Steagall.
I think — correct me if I’m wrong — Bill Clinton was against repealing Glass-Steagall, but the vote in Congress was lopsided enough to override a veto, so he went ahead and signed it.
Today on CNBC, Sandy Weill announced that we need to 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 and have banks do something that’s not going to risk the taxpayer dollars, that’s not too big to fail.”
Better late than never, even if it’s a little like a Mafia boss saying “Hey, maybe racketeering should be illegal.”
Eliot Spitzer, who was a big crusader for Wall Street reform before his, uhh, “downfall,” said Weill’s statement:
“…changes the entire debate about bank restructuring and puts enormous pressure on those who continue to maintain a broken system. For him to acknowledge that the system should be fundamentally reformed is hugely important.”
OK, what are we waiting for?