Breakup Of Mega-Banks May Now Be A Feasible Option

The New York Times:

What was made can be unmade.

JPMorgan Chase and Wells Fargo may have venerable names, but they and the pseudo-venerable Citigroup and Bank of America are all products of countless mergers and agglomerations.

There is no rule of markets that requires a financial system dominated by four cobbled-together, lumbering behemoths.

Read the whole story: The New York Times

Comments

[ken607]

07:34 AM on 07/29/2011

this is what we get with profits over people.

[Peanut Santiago]

01:03 AM on 07/29/2011

The world is on the brink of another Great Depression.

In America, Glass-Steagall prevented a lot of risk taking on Wall Street and in banks....but our stu pid politicians forgot the lessons of the past from the Great Depression and started caving in to more and more deregulation.

Other countries did the same thing and deregulated.

If we (both America and the world) don't get a handle on our banks, stock markets, and do something.....we will have another economic meltdown, this one worse than the one in 2008.

There seems to still be time....but NOT the political will.

The world did NOT learn its lesson from the Great Depression so we are probably doomed to repeat it.
Until things get so bad....that they put more regulations back in place, break up mega-banks, etc.

[kamact]

09:59 PM on 07/28/2011

So do it,...break into commercial banks and investment banks and send their trading casinos th hell

[edude]

07:26 PM on 07/28/2011

This is what the IMF requires of any third-world or developing country that comes to them hat in hand. It was predicted that only after the economy soured even more would our leaders come to their senses on this issue and force mega-banks to be broken up AND restricted to banking (and no more risky trading in exotic financial instruments). Until this does occur, the economy will be vulnerable.

[cats530]

07:03 PM on 07/28/2011

“Look, if you can’t compete in the major leagues for over a decade, it’s time to go back to the minors,” said the always outspoken Mike Mayo, an analyst with CLSA. His chronicle of ruffling bank management feathers, “Exile on Wall Street” (Wiley), will be published in the fall."

I like how this guy thinks and look forward to reading his book.

[Cameron Hodge]

05:20 PM on 07/28/2011

It should have been a condition of any of them recieving any stimulus money in the first place IMO.

[laura r]

12:50 PM on 07/28/2011

Break up the too big to fail banks. Franklin D. Roosevelt exercised the Sherman Anti Trust law in 1938 and broke up the monopolies. It helps the country grow again, monopolies stamp out competition. Mid Size Corporation is the growth engine of any country.

I am neither bitter nor cynical but I do wish there was less immaturity in political thinking.
Franklin D. Roosevelt

[gtttrades]

09:18 AM on 07/28/2011

Breaking up the big banks would do a lot to lessen unemployment. The big banks would scream it would not be efficient. We really don't need the efficienty as much as we need honest banking. How many of you can give a definition of derrivatives? Mine is " A derrivative is where Goldman Sach takes your money and gives you ............. "

[Mistinguette Grandison]

08:56 AM on 07/28/2011

That's great. We have that and the CFPB.

[mycall8]

08:09 AM on 07/28/2011

Restructure the Debt. Make the notFED eat it's own paper, pay off the chinese and the Japanese. Make a new "Bank for America"

http://www.youtube.com/watch?v=cr7vG0pnZCc

Dennis please run !

http://en.wikipedia.org/wiki/Dennis_Kucinich

[BankOfHell]

06:09 AM on 07/28/2011

Down banks! Up credit unions!

[walstir]

04:06 AM on 07/28/2011

Even if the US broke up its biggest banks; many of the world's largest banks are not US banks. Check out:
http://www.economist.com/node/18898228
http://www.bankersalmanac.com/addcon/infobank/bank-rankings.aspx

Only 4 of the world's top banks by Tier-1 capital are American. Only 1 of the top ten by total assets is American. Oher countries will be no more willing to allow the US to dictate the maximum size of their banks than the US would be to allow foreign governments to regulate US banks. If US banks were smaller relative to other world banks; then the US would have less influence on world banking that it does now.

[gemzenith]

07:05 AM on 07/28/2011

Globally, things don't look any better out there, either.Maybe those banks need to come down as well?

[collettethehedgehog]

07:43 AM on 07/28/2011

Same argument I've heard why you cant buy a car with good gas milage-the SUV's will run you over. But better run banks will actually attract more business and starve the dinosaurs.

[Kye154]

02:43 AM on 07/28/2011

Glad someone is thinking of that. However, the question must be asked: How effective will it be without re-enacting the Glass Steagall Act? ou need some sort of regulation, not only to keep them from getting to big, but operating under the geist like the Baby Bells use to.

[MikeCm]

03:35 AM on 07/28/2011

It took Wall Sreet decades to break up Glass-Steagall. They aren't going to stand by and let their cash cyclotron be disabled again. Not without a serious fight. After all, they paid good money to have it repealed.

Unless the people really make some noise about it.

[collettethehedgehog]

07:44 AM on 07/28/2011

LOUD PIERCING REBEL YELL!!!!!!

[cplusmob]

12:37 AM on 07/28/2011

is it feasible? YES
is it practical? YES
would it be good for thr country? YES
will it happen? NO

[mycall8]

08:10 AM on 07/28/2011

As long a Government Goldman and all the other lobbys hold control of the government, elections and media

[Lolie Culley]

11:53 PM on 07/27/2011

Break them up as soon as possible before they can do more damage to our country's economy.