This author hit it on the nail as Sandy Weill is missing the point by wanting to break up the big banks.  The companies that have costed taxpayers the most money are Fannie Mae and Freddie Mac.  The two largest banks that failed were Lehman Brothers and Bear Stearns which were two investment banks without retail deposit franchises.  What the banking system needs is more capital which is what is already occurring, and far stricter oversight on credit default swaps.  All swaps should be held on exchanges where it is clear what the exposures are.  If this inhibits banks from using them as much that is fine.  More transparency would help bank valuations tremendously.  It is pretty easy for Sandy Weill to say these things now and if the big banks spin off some operations that is absolutely fine, but I just think it is very important to look at the facts on the failed institutions as opposed to coming to a false conclusion and than changing laws based on that.

http://online.barrons.com/article/SB50001424053111904346504577538902710572144.html?mod=BOL_hps_mag#articleTabs_article%3D1

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