Overwhelming Majority of Americans Want to Break Up Big Banks

50% In Favor of Directly Breaking Them Up … Many More In Favor of Stopping Artificial Support and Letting them Shrink On Their Own

A new Huffington Post/YouGov poll finds:

Sixty-one percent of respondents said that banks and other financial institutions have become too large and powerful ….

A Rasmussen poll conducted last month found that:

A new Rasmussen Reports national telephone survey shows that 50% of U.S. Adults favor a plan to break up the 12 megabanks, which currently control about 69% of the banking industry. Twenty-three percent (23%) oppose breaking up the largest banks, while another 27% are undecided.

While polls show that Democrats favor breaking up the big banks more than Republicans, many Republicans point out that the big banks would fail on their own if the government stopped bailing them out. Indeed, a Harris poll from last year shows that 87% of Republicans (87% of independents, and 81% of Democrats) are against bank bailouts.

In other words, the percentage of Americans who favor breaking up the big banks – either directly through government intervention or indirectly by pulling the plug on their artificial, taxpayer-funded perpetual-bailout life support – is in the 80%-90% range.

The Americans who don’t yet have enough information to decide whether they are for breaking up the big banks may want to note that 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

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.

The undecideds may also want to note that many top bankers are themselves calling for a break up, including:

  • 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

Click here for background on why so many top bankers, economists, financial experts and politicians say that the big banks should be broken up.

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  • countdowntocollapse.com

    The sheeple need to start using cash and have only small deposits in local credit unions and banks. This would be a big step in the right direction.

  • HS

    Lots of crony capitalists on that list. I wonder if this is how Wall Street is looking to dodge the enormous derivatives liability that banks like Citibank and BAC are carrying.

  • gozounlimited

    The Judiciary has awakened…..

    They’re like stealth bombers……. By KAJA WHITEHOUSE

    A growing number of federal judges have had about as much as they can take with Wall Street firms
    paying hefty fines to settle probes into serious wrongdoing — without admitting any guilt or any executive taking the fall.

    So at least four judges, in New York and Washington, are not going to take it any more.

    The mostly quiet attack by these judges on a long-standing business practice could mushroom into one of the most serious threats to bad corporate culture in many years.

    The pushback against the “neither admit nor deny guilt” settlements comes as many Americans grow frustrated that few executives have been held personally accountable for toxic mortgages, betting against the client and insider-trading practices……. read more: http://www.nypost.com/p/news/business/as_mad_as_hell_gtmFI4WWgFlI2dsHMLB7AL

  • Honest Harry’s Used Cars

    I am for letting the individual bankruptcies of the TBTF destroy them, one right after the other.

    Why am I competing with these giant companies? Why? Because the FED is funding their lost cause.

    These companies have lots of assets on their balance sheets that the FED is funding, but which they have no right to own -in their own right.

    I’d like a completely free market disposal of all their assets. Hold an auction. Hold lots of auctions.

  • The Big Banks, own the government, in fact, they own ALL governments, North Korea is a puppet of China which is also owned by the banksters. The old saying, that there are no winners in war, just survivors is incorrect. Banksters win every time, they finance both sides and make the losers pay. The only war needed to be fought in this world is the one against bankers. These scum will put a widower out of her home but don’t have the guts to fight a real battle. Hang the bankers, they are the real psychopathic mass murders.

    • gozounlimited

      “The Big Banks, own the government”…….it’s called the Federal Reserve….and the cancer is spreading around the globe under the guise of Central Banks….you noticed the revolutionary group in Libya created a central bank while still in the
      midst of fighting entrenched political power. It certainly seems to
      indicate how extraordinarily powerful central bankers (Federal Reserve) have become.