Credit Agricole’s outspoken bank analyst Mike Mayo sat down with Bloomberg TV’s Betty Liu yesterday to lay down his reaction to Sandy Weill’s call to break up Wall Street banks.
And if you know nothing about Mayo, know this — he likes to shake things up.
Just a few weeks ago on JP Morgan’s conference call he was the first to ask Jamie Dimon if he’d lost his touch, and say that JP Morgan was too big to manage.
The guy has chutzpah, and he lent some of it to the Sandy Weill comment.
“The person who created the animal now wants to kill the animal,” he told Bloomberg TV.
Many credit Weill with being the originator of the “supermarket” banking concept as he presided over the massive growth of Citigroup in the 90’s and early 2000’s. Weill himself said yesterday that his opinion on the concept had evolved because the world have banking had changed.
Mayo said he “vehemently” disagreed with that assessment. “The same ill-conceived misplaced incentives in place when Sandy Weill was CEO of Citigroup are still in place today.”
So why would Weill want to do a 180 on this issue? His legacy, says Mayo, and the fact that it’s clear that Wall Street hasn’t changed since the financial crisis.
“Newsflash! Memo to the White House and Congress, the banking system is not fixed… The overseers are still paid by those they oversee… We need some Volcker-like oversight.”
Watch the full interview below: