Photo: Wikimedia Commons
Mike Mayo, Credit Agricole analyst and frequent bank critic went on Bloomberg TV today to discuss Sandy Weill’s comments on breaking up the big banks. He was not amused that the architect of the giant bank conglomerate now wants them broken up:
“I mean the person who created the animal now wants to kill the animal. What a shock…One other point that Sandy Weill made was that he said that the world has changed so therefore we need to break up the big banks. I vehemently 100% disagree with Sandy Weill. The world has not changed. The same ill-conceived misplaced incentives that were in place a decade ago, literally when Sandy Weill was CEO of Citigroup, are still in place today.”
Mayo does agree with Weill’s assessment of Citigroup, saying “I agree with Sandy Weill 100%. Citigroup should be broken up.”
He believes better regulation is required as well, saying that Dodd-Frank, despite its size, will continue to be ineffective as long as “The overseers are still paid by those they oversee.”
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