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Why it's time to break up the big banks, according to Sheila Bair: Customers would benefit, the...

  • Thursday, January 19, 2012, 6:25 PM ET
    Why it's time to break up the big banks, according to Sheila Bair: Customers would benefit, the government would benefit, the banks themselves would be stronger. It would be in shareholder's best interest too, she says; P/Es and price-to-book for the supersizers far underperforms the bigger regional banks - they'd likely be worth plenty more in easier-to-understand pieces.
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This news story has 6 comments:

  •  
    Not just the Banks, but the Banksters.

    After the S&L crisis of 1989, hundreds went to jail. This time, not one!
    19 Jan 2012, 06:30 PM Reply Like
  •  
    Having apparently been skewered by the sword they helped to create, the economy may end up down-sizing the banks faster than the Government could.
    19 Jan 2012, 06:47 PM Reply Like
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    Sheila Blair is spot on. Time to eliminate the crap of Too big too fail.

    It is not in the best interests to this Nation to have oligarchs controlling so much of our resources. It is not in our best interests to keep promoting the disgusting and immoral relationship between companies and government.
    19 Jan 2012, 06:51 PM Reply Like
  •  
    That's exactly why it won't happen. The regulations are in place to keep the big banks happy and reduce competition. There's no way they'd all be broken up. If anything, some may be broken up at the request of the rest of the jackals.

    Regulatory capture is in play here. The market tried to correct, which would have done the work for us, but the capture prevented that. Let them break up as they should have and you don't have to save them and then break them up.
    19 Jan 2012, 07:42 PM Reply Like
  •  
    Poor, poor Sheila....I suspect this will put a couple dozen nails in her career coffin. Sheila, don't you know you can't talk like that in public. The handlers will put your name on the "Of No Use Anymore" list.

    Well....at least I admiring you for your guts, Sheila.
    19 Jan 2012, 10:14 PM Reply Like
  •  
    Sheila is right but as long as government is centralizing power and becoming large then business will do the same so they can manage their environment and compete.These are two peas in a pod that both need downsizing.
    20 Jan 2012, 12:01 AM Reply Like
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