US banks are already starting to separate commercial and
investment banking operations, so there's no need for the radical breakup
suggested by former Citi chairman Sandy Weill, banking analyst Meredith Whitney
told CNBC Wednesday.
“You don’t have to have a draconian move to split up the
banks,” Whitney, founder of the Meredith Whitney Advisory Group said on
“Closing Bell.”
“The (banking) group has absolutely no momentum,” she said.
“You’re not getting paid to wait because the dividends are only marginally
attractive and there is still risk.” The
big banks need to be completely reconstructed and they need to get back to
basics and profitability, Whitney said. “Then you’ll see momentum.”
“It’s nice to say the big banks should be broken up (but)
it’s very expensive to do so,” Whitney said. “That’s why you’re seeing the big
banks trade at such steep discounts.”
Read more at http://www.cnbc.com/id/48321443
No comments:
Post a Comment