Sandy Weill’s recent call for the break-up of big banks felt like it turned the world financial reform upside-down. One result: the authors of a certain major piece of legislation can, by comparison, take a more moderate stance.
In separate CNBC interviews (which are recounted by a Wall Street Journal blog post) former Senator Christopher Dodd and Representative Barney Frank say Weill is wrong: no need for break-ups at the moment, if and when they’re really necessary the Dodd-Frank Act has that covered.
"I think it's frankly too simplistic an approach," says Dodd. (DFRW wonders: why do we never hear his legislative counterpart use the adverb "doddly"?)
"The notion that at this point we would do something drastic to a major part of the economy isn’t a very good idea," says Frank.
Though Frank would be glad to have Weill's support for the Volcker Rule, he's says it would have been a lot more useful if Weill had been part of the discussion two years ago.
For the full piece see "Chris Dodd: Breaking Up Banks 'Too Simplistic'" (may require subscription).