Bernanke: “Too Big To Fail Was A Major Source of The Crisis, and We Will Not Have Successfully Responded To The Crisis If We Do Not Address That Successfully”
Posted on March 21, 2013 by WashingtonsBlog
Top Economists, Financial Experts and Bankers Say We Must Break Up the Giant Banks
Current Fed chairman Ben Bernanke said yesterday:
“Too Big To Fail is not solved and gone,” he said during a press conference. “It’s still here.”
“I agree … 100 percent that it’s a real problem,” he said.
“Too Big To Fail was a major source of the crisis,” he added a little later, “and we will not have successfully responded to the crisis if we do not address that successfully.”
Bernanke joins the following top economists and financial experts who believe that the economy cannot recover unless the big, insolvent banks are broken up in an orderly fashion:
Director, Max Planck Institute for Research on Collective Goods, Bonn, and Professor of Economics, University of Bonn, Martin Hellwig
And the head of the New York Federal Reserve Bank – and former Goldman Sachs chief economist –William Dudley says that we should not tolerate a financial system in which certain financial institutions are deemed to be too big to fail.
Federal Reserve Board governor Daniel Tarullo also backs a cap on the size of banks, and Former Treasury secretary under Reagan and George H.W. Bush, Nicolas Brady, says that we need to put a cap on leverage.
Top Bankers Call for Big Banks to Be Broken Up
While you might assume that bankers themselves don’t want the giant banks to be broken up, many are in fact calling for a break up, including:
Indeed, a bipartisan consensus is forming regarding the need to break up the big banks. Click here for background on why so many top bankers, economists, financial experts and politicians say that the big banks should be broken up.