Stunning List of Economists, Financial Experts and Bankers Say We Need to Break Up the Big Banks

Top Economists and Financial Experts Say We Must Break Up the Giant Banks

The following top economists and financial experts believe that the economy cannot recover unless the big, insolvent banks are broken up in an orderly fashion:

  • Current Vice Chair and director of the Federal Deposit Insurance Corporation – and former 20-year President of the Federal Reserve Bank of Kansas City – Thomas Hoenig (and see this)
  • Former Federal Reserve Bank of New York economist and Salomon Brothers vice chairman, Henry Kaufman
  • Dean and professor of finance and economics at Columbia Business School, and chairman of the Council of Economic Advisers under President George W. Bush, R. Glenn Hubbard
  • Former chief economist for the International Monetary Fund, Simon Johnson (and see this)
  • The leading monetary economist and co-author with Milton Friedman of the leading treatise on the Great Depression, Anna Schwartz
  • Economics professor and senior regulator during the S & L crisis, William K. Black
  • Professor of entrepreneurship and finance at the Chicago Booth School of Business, Luigi Zingales
  • The Director of Research at the Federal Reserve Bank of Dallas, Harvey Rosenblum
  • Director, Max Planck Institute for Research on Collective Goods, Bonn, and Professor of Economics, University of Bonn, Martin Hellwig

Even current Fed chairman Ben Bernanke says that the big banks should be downsized:

(Update.)

And the head of the New York Federal Reserve Bank – and former Goldman Sachs chief economist – William Dudley says that we should not tolerate a financial system in which certain financial institutions are deemed to be too big to fail.

Federal Reserve Board governor Daniel Tarullo also backs a cap on the size of banks, and Former Treasury secretary under Reagan and George H.W. Bush, Nicolas Brady, says that we need to put a cap on leverage.

Top Bankers Call for Big Banks to Be Broken Up

While you might assume that bankers themselves don’t want the giant banks to be broken up, many are in fact calling for a break up, including:

  • Former Citigroup CFO Sallie Krawcheck- who ran Citigroup’s Smith Barney brokerage network – and who was head of Bank of America Corp’s wealth and asset management division
  • Former managing director of Goldman Sachs – and head of the international analytics group at Bear Stearns in London- Nomi Prins
  • Numerous other bankers within the mega-banks (see this, for example)
  • Founder and chairman of Signature Bank, Scott Shay
  • Former Natwest and Schroders investment banker, Philip Augar
  • The President of the Independent Community Bankers of America, Camden Fine

Indeed, a bipartisan consensus is forming regarding the need to break up the big banks. Click here for background on why so many top bankers, economists, financial experts and politicians say that the big banks should be broken up.

This entry was posted in Business / Economics, Politics / World News. Bookmark the permalink.
  • http://twitter.com/tomdennen Tom Dennen

    Add one more, first in line a couple of years ago:
    :JamesK. Galbraith. In front of the Senate Judicial committee in
    May of 2010:

    “I write to you from a disgraced profession. Economic theory, as widely
    taught since the 1980s, failed miserably to understand the forces
    behind the financial crisis. Concepts including “rational
    expectations,” “market discipline,” and the “efficient
    markets hypothesis” led economists to argue that speculation
    would stabilize prices, that sellers would act to protect their
    reputations, that caveat emptor could be relied on, and that
    widespread fraud therefore could not occur. Not all economists
    believed this – but most did.

    “Thus the study of financial fraud received little attention. Practically
    no research institutes exist; collaboration between economists and
    criminologists is rare; in the leading departments there are few
    specialists and very few students. Economists have soft-pedaled the
    role of fraud in every crisis they examined, including the Savings &
    Loan debacle, the Russian transition, the Asian meltdown and the
    dot.com bubble. They continue to do so now. At a conference sponsored
    by the Levy Economics Institute in New York on April 17, the closest
    a former Under Secretary of the Treasury, Peter Fisher, got to this
    question was to use the word “naughtiness.” This was on the
    day that the SEC charged Goldman Sachs with fraud.”

    (From soon to be published, “The Final, Final Solution: Stand on Your Own Two Feet) by Tom Dennen

  • charlestonvoice

    Nonsense. Stop giving them taxpayer money & let them go bye-bye on their own. Their mess – make them wipe their own ass.

  • http://www.facebook.com/john.turmel John KingofthePaupers Turmel

    Jct: These clowns think that breaking up the big malfunctionging banks into more smaller malfunctioning banks is too stupid to countenance but what else from the “dismal profession.”

  • Randall

    AMERICA
    – MILLIONS OF JOBS ARE AVAILABLE NOW; MILLIONS OF MORTGAGES SAVED
    NOW; MILLIONS OF STUDENT LOAN DEBTS CLEARED NOW; THOUSANDS OF
    VETERANS THANKED NOW-INCLUDING HOMELESS VETERANS!

    THE
    ECONOMIC FREEDOM AND STABILITY ACT (EFSA)

    Please find
    below a simplistic compilation of suggestions for fixing America’s
    economy. Instead of giving any further bail-outs of billions of
    dollars to the banks, financial houses, or corporations that will
    squander the money on obscene and unearned bonuses without
    giving any thought to using those funds for the betterment of the
    poor and middle class, the following plans are presented
    instead:

    PLAN A:

    There are 40-50 million
    baby boomers who remain employed in the work force. We suggest that
    the United States government offer each of those employed baby
    boomers $1 million dollars each, tax free, as severance to
    retire from their employment within 90 days of receipt of the $1
    million dollar severance with the following
    stipulations:

    I.
    The new EFSA retiree MUST cease their current employment and not hire
    on as an employee anywhere in America ever again. 40-50 million job
    openings will occur – Younger potential employees and college
    graduates are then hired. Unemployment costs saved and
    employment opportunities will immediately be resolved. (The new
    retirees CAN start a business, and they can eventually hire new
    employees too).

    II.
    The new EFSA retiree MUST buy a new AMERICAN made energy saving,
    green rated automobile. With 40-50 million new American made
    vehicles ordered the auto industry will once again become stable and
    solvent with jobs and needed resources enjoying economic growth-
    Employment, Environment and Auto Industry fixed.

    III.
    The new EFSA retiree MUST either buy an American house/condo or pay
    off their existing mortgage thereby increasing jobs, and stabilizing
    the housing and mortgage issues – Employment and Housing Crisis
    fixed.

    IV. The new EFSA
    retiree MUST purchase a life insurance policy to insure that those
    who depend on them for support will be taken care of in the event of
    untimely death or medical setback. –Dependents and Caregiver
    Coverage Fixed.

    V.
    The new EFSA retiree MUST purchase and carry yearly medical, dental
    and vision coverage for themselves and their dependents, decreasing
    healthcare costs and burdens for the nation, and ensure continued
    wellbeing and quality of life. – Financial, Employment and
    Healthcare Coverage Fixed.

    VI.
    The new EFSA retiree MUST forfeit all future Social Security,
    Medicare, and/or Medicaid benefits decreasing trillions of dollars of
    social welfare costs; eliminating the financial burdens on the coming
    generations, and encouraging self-determination. Budget Deficit
    fixed.

    *** Certainly even some of the noted suggestions
    warrant further consideration, or the opportunity to be further
    elaborated on and implemented. Such an economic and stability
    program could be in effect by the end of June 2013 without much
    financial investment considering the billions of taxpayer dollars
    being wasted each minute as you read this proposal.

    AMERICAN
    VETERAN ACKNOWLEDGEMENT OF SACRAFICE ACT (AOS)

    PLAN B:

    THE
    AMERICAN VETERAN ACKNOWLEDGEMENT OF SACRIFICE ACT– AOS

    1.
    10-20 ACRES OF AMERICAN LAND AND AN AMERICAN MADE
    TRUCK (NEW OR USED) WILL BE PROVIDED ALL HONORABLY DISCHARGED
    VETERANS.

    2. VETERANS MUST GROW SOMETHING
    FOR THE GOOD OF THE COMMUNITY ON THE LAND (FOOD, LIVESTOCK,
    WILD
    GAME, PRODUCTS, ETC)

    3. VETERANS CANNOT
    SELL, CONVEY, USE AS COLLATERAL OR TRANSFER OWNERSHIP OF THE LAND
    FOR
    10 YEARS. THE TRUCK CAN BE SOLD OR OWNERSHIP CONVEYED AFTER
    FIVE YEARS.

    4. THE LAND CAN BE INHERITED
    BY DEPENDENTS OF THE VETERAN BUT CANNOT BE SOLD, CONVEYED, USED AS
    COLLATERAL OR TRANSFERRED OUT OF THE FAMILY FOR 10 YEARS.

    5.
    VETERANS ARE RESPONSIBLE FOR STEWARDSHIP OF THE LAND TO
    INCLUDE ALL WASTE CREATED ON THE LAND.

    6.
    THE LAND CANNOT BE A BLIGHT ON THE COMMUNITY, OR THE LAND CAN BE
    RECOVERED BY THE GOVERNMENT AS FORFEITURE FOR FAILURE TO MAINTAIN THE
    LAND AS IT WAS INTENDED TO BE USED.

    With the implementation of
    the SEVERANCE AND VETERAN ACTS, America’s students will see a
    brighter future to invest their efforts and talents while creating
    plentiful jobs without fear of increasing the unemployment
    ranks.

    STUDENTS TO PROFESSIONALS ACT – (STP)

    PLAN
    C:

    THIS PROGRAM WAS CREATED TO CONNECT HIGH SCHOOL AND COLLEGE
    STUDENTS TO EMPLOYERS WHO WILL ACT AS BENEFACTORS, MENTORS AND
    INVESTORS IN THE STUDENTS’ FUTURE PROFESSIONAL AMBITIONS BY FUNDING
    A STUDENT’S EDUCATION OR SKILL TRAINING ON A 1:1 RATIO:

    ONE
    YEAR OF EMPLOYMENT WITH THE SPONSORING COMPANY FOR ONE YEAR OF
    COLLEGE OR SKILL TRAINING.

    1. A SPONSORED
    STUDENT WILL WORK SIX TO EIGHT WEEKS OF EACH SUMMER ATER THEIR
    SOPHOMORE YEAR IN HIGH SCHOOL UNTIL THEY GRADUATE FROM HIGH SCHOOL,
    AS AN INTERN WITH THE EMPLOYER-SPONSOR WHO HAS CONTRACTED TO INVEST
    IN THE STUDENT’S COLLEGE OR TRADE SCHOOL TUITION.

    2.
    ONCE THE STUDENT GRADUATES FROM THE COLLEGE OR TRADE SCHOOL OF
    THEIR CHOICE, THE STUDENT WILL WORK ONE YEAR FOR THE EMPLOYER-SPONSOR
    FOR EVERY YEAR THE EMPLOYER-SPONSOR FUNDED THAT STUDENT’S EDUCATION
    OR TRAINING.

    3. SAID EMPLOYMENT WILL BE AT
    A COMPETITIVE RATE OF PAY, WAGE, SALARY AS DETERMINED BY THE MARKET
    AT THE TIME OF COMPLETION OF COLLEGE OR TRAINING.

    4.
    CONTRACT AND NEGOTIATIONS REGARDING COLLEGE/TRAINING
    TUITION/EXPENSES AND EMPLOYER REIMBURSEMENT WILL BE DEFINED BY
    ARBITRATION AND STANDARDS DETERMINED BY THE DEPT OF LABOR.

    ***
    THIS PROGRAM WILL CREATE AN AMERICAN TRANSITIONAL VIABLE WORK FORCE
    WITH PRACTICAL WORK EXPERIENCE FOR PROSPECTIVE EMPLOYERS-SPONSORS TO
    ACCESS AND MENTOR.

    *** THIS PROGRAM WILL CREATE JOBS AND
    DIRECTLY CONNECT THE WORKFORCE WITH THE INDUSTRIES IN NEED OF HUMAN
    CAPITAL.

    *** THIS PROGRAM WILL ENABLE STUDENTS TO TRANSITION
    TO EMPLOYMENT WITH A DIRECT INVESTMENT IN THEIR FUTURE, WHILE
    BOLSTERING THE ECONOMIC GROWTH OF THE NATION.

    With the
    implementation of these simple SEVERANCE, VETERAN & STUDENT ACTS,
    America’s economy, spirit, and future will exponentially
    expand beyond the nation’s current burdens and constraints,
    with prosperity and renewed INVEST in AMERICA (I AM) – SOLUTION.

    • Scott Bell

      except this takes away from the peoples free will. and is impracticable with money. Good ideas though.

  • eddie

    what good is it now America has already been checkmated we have already passed the point of no return.
    some of these people have committed high treason and are tying to blend in with the crowd so nobody notices they were involved with the crime.

 

 

Twitter