What Sandy Weill was paid to help destroy the US economy.
Sandy Weill is having a change of heart. The aggressive dealmaker who built Citigroup on the idea that in banking, bigger is better, said Wednesday that he believes big banks should be broken up.
Speaking on CNBC's "Squawk Box," the 79-year-old Weill appeared to shock the show's anchors when he said consumer banking should be split from riskier investment banking. That would mean dismembering Citigroup and other big U.S. banks, like JPMorgan Chaseand Bank of America.
It's an idea that's traditionally more in line with the banking industry's harshest critics, not its founding fathers.
Weill retired as CEO of Citigroup in 2003 but remained chairman until 2006, b(The banks imploded right after he retired. How convenient) building it into a giant that offered both consumer and investment banking.
"I think the world changes," he said, "and the world that we live in is different than the one that we lived in 10 years ago." It is different today because you f*cked it all up.
It's an ironic twist coming from an empire-builder who nursed Citigroup into a behemoth.
Weill said the radical change is necessary if U.S. banks want to rebuild trust(Trust that was lost because of YOU!!!!) and remain leader of the world's financial system.
The Glass-Steagall Act of 1933 was repealed in 1999, eliminating the legal separation between consumer banking and investment banking. As a result, the largest banks, not only take deposits and make loans, but have also become huge buyers and sellers of complex financial derivatives and asset-backed securities. Those higher-risk investments have helped them become more profitable, but they've also opened up the banks to huge trading losses.
But in the same interview, he showed his fondness for the industry. He credited mega-banks for providing capital markets that helped convert communist countries to capitalism (Yes China is all about Democracy today thanks to Mega Banks….),and moved poor people into the middle class. He meant to say moved middle class into the poor house. He misspoke.
"It is really sad what is happening, and it's sad for young people," he said (Sad thanks to you)
Sandy Weill is a snake. He was the CEO of The Travelers and at one time the highest paid CEO in the country. He made hundreds of millions of dollars laying people off. He merged the Travelers with Citi Bank and then discarded the Travelers and stole their umbrella logo. Eventually he sold it back to the Travelers for millions of dollars. Then he grew Citi Group using fraud and unsavory business practices until it was about to implode and then left the carnage for everyone else to clean up. Now that he is retired (still with bank accounts over flowing with money) he is free to admit everything he did was a terrible idea. How nice! They ought to hang the b*stard.