Breaking Up Now Whether They Like It Or Not
Meredith Whitney was just on CNBC’s Closing Bell talking about Sandy Weill’s shock announcement that he believes the banks should be broken u.
You won’t be surprised to know that the famed research analyst agrees with Weill — she thinks the supermarket business model for banking simply doesn’t work, and that a reconstruction is in order.
But that doesn’t mean she thinks that the government needs to take a hacksaw to The Street. Quite the contrary, she says the market is forcing the saw already. The banks are over capitalized and sluggish, and they’ve destroyed pricing in products like credit cards and home equity loans by emphasizing securitization and capital markets.
Source: Business Insider