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Economist Peter Morici argues breaking up big banks may be the only way to prevent issues such as what J.P. Morgan is going through.
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The -- confident regulator the president says David mortgage -- gone bad warns more rules to protect taxpayers and -- an economist university says breaking up big.
Maybe the only way to prevent more problems like this.
-- -- -- Yes sir I think that's the way to go.
I think that commercial banking and investment banking should be separated again.
But I think that we JPMorgan illustrates I don't believe there was anybody there -- malice or in other words no rogue traders I mean these -- you know decisions made by people as a group.
That the thing isn't -- JPMorgan simply too big to be managed.
It's an interest in spin on it.
I'm wondering though.
Work some of the new laws.
And and some of the new regulations already put it and part of the Dodd-Frank.
Meant to address this sort -- Aaron stupid trading that might be no malice intended but -- reckless that was supposed to be police better.
Well they don't know where to draw the line if you say that a bank can't trade on its own book.
Then they can't pageant they can't hedge they can't make a market -- securities which investment banks have to do what capital markets don't work.
So the question is what do you draw the line and hedging and even try to explain that -- -- -- out for the last two years at the end of the day there is no reasonable place to draw the line.
Now -- banks depository that take deposits and make loans with separate places from investment houses we wouldn't have to worry about that tomorrow -- said.
-- abroad Peter bludgeoned and -- its -- bank they're not right they're all how another not big mover operation.
That that they're not but so does so they don't we had a competitive disadvantage -- there -- -- Well I think from the time a Glass-Steagall in 1933 to the end to the Clinton administration American investment banks did.
Very very well as separate entities I don't believe that they do need to be combined.
And -- combined they create these very difficult regulatory problems.
I would much rather be if I -- Jamie Dimon independent of all the hassles of Dodd-Frank then to have the privilege of having a bank as well as an investment house.
Interest --
