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In Defining Hypocrisy, Weill, Who Led Repeal Of Glass Steagall, Now Says Big Banks Should Be Broken Up

Tyler Durden's picture




 

Who is Sandy Weill? He is none other than a retired Citigroup Chairman, a former NY Fed Director, and a "philanthropist." He is also the man who lobbied for overturning of Glass Steagall in the last years of the 20th century, whose repeal permitted the merger of Travelers of Citibank, in the process creating Citigroup, the largest of the TBTF banks eventually bailed out by taxpayers. In his memoir Weill brags that he and Republican Senator Phil Gramm joked that it should have been called the Weill-Gramm-Leach-Bliley Act. Informally, some dubbed it “the Citigroup Authorization Act.” As The Nation explains, "Weill was instrumental in getting then-President Bill Clinton to sign off on the Republican-sponsored legislation that upended the sensible restraints on finance capital that had worked splendidly since the Great Depression." Of course, by overturning Glass Steagall the last hindrance to ushering in the TBTF juggernaut and the Greenspan Put, followed by the global Bernanke put, was removed, in the process making the terminal collapse of the US financial system inevitable. Why is Weill relevant? Because in a statement that simply redefines hypocrisy, the same individual had the temerity to appear on selloutvision, and tell his fawning CNBC hosts that it is "time to break up the big banks." That's right: the person who benefited the most of all from the repeal of Glass Steagall is now calling for its return.

Hypocrisy defined 5:20 into the interview below:

I am suggesting that [big banks] be broken up so that the taxpayer will never be at risk, the depositors won't be at risk, the leverage of the banks will be something reasonable... I want us to be a leader... I think the world changes and the world we live in now is different from the world we lived in ten years ago.

How ironic is it then that at the signing ceremony of the Gramm-Leach-Bliley, aka the Glass Steagall repeal act, Clinton presented Weill with one of the pens he used to “fine-tune” Glass-Steagall out of existence, proclaiming, “Today what we are doing is modernizing the financial services industry, tearing down those antiquated laws and granting banks significant new authority.”

How ironic indeed. And how hypocritical for this person to have the temerity to show himself in public, let alone demand the law he ushered in, be undone.

Weill discussing all of the above and more with a straight face here:

For those curious to learn a bit more about Weill, here is some good reading:

Weill is the Wall Street hustler who led the successful lobbying to reverse the Glass-Steagall law, which long had been a barrier between investment and commercial banks. That 1999 reversal permitted the merger of Travelers and Citibank, thereby creating Citigroup as the largest of the “too big to fail” banks eventually bailed out by taxpayers. Weill was instrumental in getting then-President Bill Clinton to sign off on the Republican-sponsored legislation that upended the sensible restraints on finance capital that had worked splendidly since the Great Depression.

 

Those restrictions were initially flouted when Weill, then CEO of Travelers, which contained a major investment banking division, decided to merge the company with Citibank, a commercial bank headed by John S. Reed. The merger had actually been arranged before the enabling legislation became law, and it was granted a temporary waiver by Alan Greenspan’s Federal Reserve. The night before the announcement of the merger, as Wall Street Journal reporter Monica Langley writes in her book “Tearing Down the Walls: How Sandy Weill Fought His Way to the Top of the Financial World... and Then Nearly Lost It All,” a buoyant Weill suggested to Reed, “We should call Clinton.” On a Sunday night Weill had no trouble getting through to the president and informed him of the merger, which violated existing law. After hanging up, Weill boasted to Reed, “We just made the president of the United States an insider.”

 

The fix was in to repeal Glass-Steagall, as The New York Times celebrated in a 1998 article: “…the announcement on Monday of a giant merger of Citicorp and Travelers Group not only altered the financial landscape of banking, it also changed the political landscape in Washington.... Indeed, within 24 hours of the deal’s announcement, lobbyists for insurers, banks and Wall Street firms were huddling with Congressional banking committee staff members to fine-tune a measure that would update the 1933 Glass-Steagall Act separating commercial banking from Wall Street and insurance, to make it more politically acceptable to more members of Congress.”

 

At the signing ceremony Clinton presented Weill with one of the pens he used to “fine-tune” Glass-Steagall out of existence, proclaiming, “Today what we are doing is modernizing the financial services industry, tearing down those antiquated laws and granting banks significant new authority.” What a jerk.

 

Although Weill has shown not the slightest remorse, Reed has had the honesty to acknowledge that the elimination of Glass-Steagall was a disaster: “I would compartmentalize the industry for the same reason you compartmentalize ships,” he told Bloomberg News. “If you have a leak, the leak doesn’t spread and sink the whole vessel. So generally speaking, you’d have consumer banking separate from trading bonds and equity.”

 

Instead, all such compartmentalization was ended when Clinton signed the Gramm-Leach-Bliley Act in late 1999. In his memoir Weill brags that he and Republican Senator Phil Gramm joked that it should have been called the Weill-Gramm-Leach-Bliley Act. Informally, some dubbed it “the Citigroup Authorization Act.”

 

Gramm left the Senate to become a top executive at the Swiss-based UBS bank, which like Citigroup ran into deep trouble. Leach—former Republican Representative James Leach—was appointed by President Barack Obama in 2009 to head the National Endowment for the Humanities, where his banking skills could serve the needs of intellectuals. Robert Rubin, the Clinton administration treasury secretary who helped push through the Citigroup Authorization Act, was the most blatant double dealer of all: He accepted a $15-million-a-year offer from Weill to join Citigroup, where he eventually helped run the corporation into the ground.

 

Citigroup went on to be a major purveyor of toxic mortgage–based securities that required $45 billion in direct government investment and a $300 billion guarantee of its bad assets in order to avoid bankruptcy.

 

Weill himself bailed out shortly before the crash. His retirement from what was then the world’s largest financial conglomerate was chronicled in the New York Times under the headline “Laughing All the Way From the Bank.” The article told of “an enormous wooden plaque” in the bank’s headquarters that featured a likeness of Weill with the inscription “The Man Who Shattered Glass-Steagall.”

 

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Wed, 07/25/2012 - 08:21 | 2648461 buzzsaw99
buzzsaw99's picture

fukking maggot

Wed, 07/25/2012 - 08:27 | 2648480 cossack55
cossack55's picture

The scumbag would have been much more palatable had his tie been made of hemp.

Wed, 07/25/2012 - 08:33 | 2648502 Short Memories
Short Memories's picture

Put him in stocks in the town square so we can spit and throw fruit at him!

Wed, 07/25/2012 - 08:41 | 2648532 max2205
max2205's picture

He's trying reverse psychology on us.

Wed, 07/25/2012 - 08:41 | 2648538 economics9698
economics9698's picture

Glass-Steagall was a payback by the Rockefellers against the Morgans for the Sherman and Clayton anti trust acts of 1890 and 1914.

It has nothing to do with nothing.  The TBTF problem SHOULD have been solved in 2008 with the bankruptcy of all the TBTF banks. 

Problem over, decentralized banking.

Glass-Steagall is a red herring, ignore it and this creep.

Glass-Steagall would have made no difference in the housing boom and bust.  The boom was caused by Alan Greenspan’s 1% fed funds rate in 2003-04.

Wed, 07/25/2012 - 08:49 | 2648549 strannick
strannick's picture

Guy reminds me of Soros, gettin ''all humanitarian'' after relieving Britain of a Billion dollars..., or Greenspan talking about ''too much debt''. I guess Judas Iscariot offering to return the money after the deed is the ultimate example

Wed, 07/25/2012 - 09:05 | 2648655 Hard1
Hard1's picture

And the cynical asshole award of the year goes to....

Wed, 07/25/2012 - 10:26 | 2649129 Stackers
Stackers's picture

It was Bush deregulations that collapsed the system ....... oh wait. Clinton ? What did he do ?

Wed, 07/25/2012 - 11:03 | 2649345 sqz
sqz's picture

@economics9698

You are completely missing the point.

The banks became TBTF due to lack of compartmentalization, deregulation of banking (since 80's) and lack of oversight of all banking activities (started with birth of shadow banking in early 60's [1]).

Once they became TBTF not bailing them out was simply out of the question. That's what Too Big To Fail means. It is not a political term, though it is catchy enough to seem like it. It does not matter where you are on the political, economic or business spectrum, if entities known officially known as Systemically Important Financial Institutions [2] or, even worse, the corporations who backed some of their largest and most leveraged trades, e.g. AIG, were allowed to fail, the interconnectedness of the system would mean that one failure would risk, nay cause, the whole financial system to collapse.

The collapse does not even need to be for a long time, the damage could be so large with even a short collapse that it would take an inordinate amount of time to recover from it and risk permanent structural damage to real economies.

If you think all these consequences are somehow made up, then you must have missed the whole Lehman "experiment" and were asleep in 2008.

If you think who does the bailouts or bailins or however else spends public money post-crises is more important than fixing the causes of the crises, then no one can help you...

Just think: even if successive large government spenders (wars and benefit systems etc) and continunous money printing by central banks had occurred as is usual, if the banks had been able to fail like any other business as a consequence of taking excessive risk, then there would have been no systemic crises. The failures would have been spread across a larger number of actors, like the old Savings and Loans crises. From those focussed and relatively small private wealth destructions, there would have arisen opportunities for others to step in and the consequences would have been very temporary, especially for the real economy. Instead, the West, if not the world is now facing 20+ years of stagnation due to locked up useless paper, excess liquidity to stem the worst of the pain, and highly corrupt excessively important institutions which cannot be easily reformed let alone removed setting us up for the next inevitable crisis.

Compartmentalization, which should be greatly more restrictive than Glass-Steagal (but at least that was a final barrier), is the ONLY way to begin to sever the interconnectedness of large speculative actors, like you see from investment banking, from the real economy. Unlike hedge funds, investment banks cannot currently fail without affecting everyone else permanently. This MUST change or more, higher damage and more frequent crises will keep occuring.

[1] Shaxson, "Treasure Islands": http://www.amazon.com/Treasure-Islands-Uncovering-Offshore-Banking/dp/02...

[2] Financial Stability Board, SIFI: http://www.financialstabilityboard.org/publications/r_111104bb.pdf

Wed, 07/25/2012 - 11:31 | 2649483 LetThemEatRand
LetThemEatRand's picture

Economics9698 is a government contractor who bitches about paying taxes.  He is one of those guys who screams all day long that government is bad while he feeds from the government trough.  He is against regulation because his religion is that all things government are bad (except his pay check).  The facts are completely irrelevant to him.      

Wed, 07/25/2012 - 08:45 | 2648551 Divided States ...
Divided States of America's picture

What did you expect from another conniving deceit Jew who works on Wall Street? I dont expect anything less given how they have infiltrated the top positions of 90% of American financial institutions.

Wed, 07/25/2012 - 09:43 | 2648900 economics9698
economics9698's picture

For every action there is a equal and opposite reaction.

Wed, 07/25/2012 - 09:41 | 2648882 Antifaschistische
Antifaschistische's picture

BINGO....If the Market were allowed to do SOME of it's work the TBTF Banks WOULD be broken up.   How about closing the "discount window" at the Fed!!   Or how about opening up the "discount window" at the Fed to ALL "big boys" with enough cash to satisfy Fed minimums!  

Breaking UP the banks must be done by tearing DOWN the Fed.   Then caveat emptor.

Wed, 07/25/2012 - 08:43 | 2648535 economics9698
economics9698's picture

Get over Glass-Stegall, its a BS issue.  The problem is the Federal Reserve.

 

Wed, 07/25/2012 - 08:47 | 2648556 LoneStarHog
LoneStarHog's picture

Bullshit! ... That is like saying that the problem is AIDS, while ignoring the HIV virus.

Wed, 07/25/2012 - 09:41 | 2648887 economics9698
economics9698's picture

The Fed is the dick that spreads the virus.

Wed, 07/25/2012 - 12:37 | 2649781 dirtbagger
dirtbagger's picture

Repeal of Glass Steagall was just a formality to make investment banking activities appear legal in print.  There were already so many loop holes in Glass-Steagal legislation prior to final repeal it looked like swiss chese.  The repeal was just the final death rattle of the pretend Chinese wall and allowed Citi to acquire Travelers.

It doesn't matter what legislation is passed when the revolving door regulators are owned by the financial elite and there is zero enforcement and oversight.  Makes the Corleone family look like a bunch of pikers. 

Wed, 07/25/2012 - 09:35 | 2648851 Dingleberry
Dingleberry's picture

Glass Stegall allowed these guys to lever to the moon.....how is that not part of the problem?

Wed, 07/25/2012 - 09:40 | 2648881 economics9698
economics9698's picture

And who bailed out the TBTF banks?

Wed, 07/25/2012 - 08:41 | 2648536 The They
The They's picture

When he credited our financial system for "lifting a billion people out of poverty" and leading the east out of communism i spit my coffee at my screen in surprise and disgust.

Wed, 07/25/2012 - 08:43 | 2648542 LoneStarHog
LoneStarHog's picture

Will Barney Frankfurter qualify under the latter?  I would like to throw Barney at him, bottom first. Two f__king maggots!

Wed, 07/25/2012 - 08:44 | 2648550 gmrpeabody
gmrpeabody's picture

Well..., he just set us all straight on CNBC by saying the repeal of Glass/Stegal didn't allow the banks anything new. That it was aimed at insurance companies. Maybe he's working on his legacy.

Wed, 07/25/2012 - 08:35 | 2648513 buzzsaw99
buzzsaw99's picture

That this scumbag can slither out of the woodwork without fear shows all that is wrong with the world.

Wed, 07/25/2012 - 08:40 | 2648525 Doomer
Doomer's picture

Better yet, roasted on a spit with an apple in his mouth.

Wed, 07/25/2012 - 08:51 | 2648573 Dugald
Dugald's picture

How can you revile him, he is YOU! just another good ol boy...a red blooded American proud of the flag who made heaps...the American way, money before and above all. But now the leopard is changing his spots before its too late...he hopes, in case someone wants to decorate a tree with him, and lets not forget all those like him.

Wed, 07/25/2012 - 08:51 | 2648576 phalfa5
phalfa5's picture

He's just jealous that he is not in on the game (take)

Wed, 07/25/2012 - 08:57 | 2648599 Payable on Death
Payable on Death's picture

He's a hypocrite, for sure. But, he's right about breaking up TBTF. The problem is he's using the same excuse then as now: "To make America competitive." That, er, principle is malleable.

Wed, 07/25/2012 - 09:25 | 2648725 Bob
Bob's picture

Patriotism is the last refuge of a scoundrel.  As if these mother fuckers have any meaningful attachment to anything this country has ever stood for or been except a resource to be strip mined by any and every means possible.  Cocksuckers. 

But appeals to patriotism are the rage today.  Hum the right tune and salute the flag and you've got a ready army of useful idiots to run interference while the money boyz and their pet tools get the job done just the way you need it.

Same shit, different day.  Predatory parasites as success stories blessing us with their guidance. Pathetic. 

Wed, 07/25/2012 - 09:18 | 2648760 eatthebanksters
eatthebanksters's picture

= Jamie's mentor

Wed, 07/25/2012 - 12:32 | 2649759 battle axe
battle axe's picture

Hey Sandy, how is your drug addict son doing these days you piece of shit. 

Wed, 07/25/2012 - 16:53 | 2650773 Catflappo
Catflappo's picture

see you Next Tuesday

Wed, 07/25/2012 - 08:21 | 2648464 overmedicatedun...
overmedicatedundersexed's picture

rats run for cover with any sun light..maybe he thinks the mobs  with pitch forks are around the corner of wall st.

Wed, 07/25/2012 - 08:30 | 2648489 ghengis86
ghengis86's picture

I'm convinced that only pitch forks, torches, tar, feathers and public hangings will be the solution to this mess.  Until that day comes, nothing will change and our only outlet will be venting on some intertube forums...fucking hate these fucking pieces of shit

Wed, 07/25/2012 - 08:47 | 2648559 gmrpeabody
gmrpeabody's picture

Somebody woke up on the wrong side of the bed...

Wed, 07/25/2012 - 08:53 | 2648587 ghengis86
ghengis86's picture

Lol...seems to be happening a lot lately since the first place I check for news is ZH in the morning.  It's a good pre-antidote for all the bullshit I'm going to be bombarded with throughout the day. 

Wed, 07/25/2012 - 09:46 | 2648916 Doomer
Doomer's picture

Sounds like he woke up the right side to me!

Wed, 07/25/2012 - 08:54 | 2648593 azzhatter
azzhatter's picture

You are correct. Only a violent revolution changes things now. The people have no other weapons left, the ballot box is a joke

Wed, 07/25/2012 - 08:23 | 2648467 KNiCKER
KNiCKER's picture

It's just depressing... All lower and middle class workers are crunched, these crookes benefit and get some airtime as well to pretend they want things to be 'fixed'...

 

Motherfuckers!

Wed, 07/25/2012 - 09:47 | 2648902 Bob
Bob's picture

But he wants to "make America competitive!"  It brings tears to my eyes . . . we've been needing guys like him for a long time. 

Better get him in a position of real influence ASAP. 

A sixteen year old who has consentual sex with a fifteen year old is barred from meaningful contact with children for twenty five years after release from prison and is a pariah wherever he goes. 

But being a rich gangster makes you a respectable leader. 

Wed, 07/25/2012 - 08:25 | 2648470 Benjamin Glutton
Benjamin Glutton's picture

Erect gallows near the studio exit...CNBC is best rat trap ever,imo.

Wed, 07/25/2012 - 08:53 | 2648586 Mercury
Mercury's picture

That won't happen - I can't tell if the hard-hitting news anchors on CNBC are shocked because Weill himself is saying this or because it has never occured to them that ending TBTF might actually be a good idea.

Wed, 07/25/2012 - 09:06 | 2648667 Herodotus
Herodotus's picture

Better yet, when he gets into the elevator to leave the building, sprinkle some of those blue prussic acid crystals into the elevator cab from above.  Have a hearse waiting for him when he gets to the lobby.

Wed, 07/25/2012 - 08:28 | 2648471 Ghordius
Ghordius's picture

look who is talking like a muppet here! one of i-dog's nefarious-in-chief! hilarious!!

truly a vampire-turned-muppet, I think he is just one the first of his kind that realizes that the very system they gutted is the same that is supposed to keep their wealth intact...

Wed, 07/25/2012 - 09:16 | 2648752 JOYFUL
JOYFUL's picture

In truth Ghordius, this could be the right spot to use yur term...re-dim-en-sion-ing...for this is another of the masters-of-the-universe[indeed the very mentor of dim=on hisself!]who's mastery is merely that art of constantly redecorating the front hall of that false-front flophouse they called Kapitalism...so that it suitably reflects the temper of the times...

these are the only tru artisans left to postmodernity, interior decorators of the time and space in which we are subject to their follies and their vanities...and in the absence of any surviving aesthetic principle which could shed love or light upon us, their Louis IVth like dabblings in the pastoral settings of a staged political process are the only entertainment afforded to the peasantry, who goggle awestruck at the royal presence as their pockets are picked by the pros in the crowd.

This is raw power in action, alive with the stink of success at the shell game...the free-est of free markets' in which the kings of the jungle roam at will amongst the hard pressed herds...redimensioning their bodies into the choicest and juiciest bits of their banqueting...

and the hyenas of DC follow at respectful distance in hope of catching the remains.

Wed, 07/25/2012 - 09:28 | 2648819 i-dog
i-dog's picture

Spot on assessment. And, mark my words, the call for the demise of the Central Banks and the Big Banks is going to continue to rise from a low mumble to a tumultuous roar over coming weeks (note: not months).

It won't just be Ghordius and Sandy Weill and George Washington and Max Keiser ... it's going to go mainstream! 'They' are now ready to dismantle the old money system in preparation for the new ... IMO.

PS. I still don't see an election happening in November....

Wed, 07/25/2012 - 09:41 | 2648889 MsCreant
MsCreant's picture

I have been perched on the precipice of doom so long, I fear I am taking things for granted and walking about the perch as if the edge is not there. I'm sick of feeling like it is getting ready to blow, and then it does not.

But I understand why you think we are there. I just can't do it any more.

Wed, 07/25/2012 - 10:36 | 2649186 i-dog
i-dog's picture

I've not been on the precipice, as you put it, MsC, so I'm not exhausted, by any means ... because I've been predicting this timeline on here since that last election in 2010 ... basically, from as soon as the TP was co-opted by the mainstream republicrats (though I care not at all for party politics, I do watch their manoueverings). It was obvious, to me, that there would not be another election -- notwithstanding that 'they' control all the contestants (including Ron Paul, from the beginning, IMO) -- because all their mumbo-jumbo symbolism points to an end-2012 target date and the co-opting of the TP was the end of any political resistance in the US.

I have been trying to point this timeline out on here, and to describe the powers and agenda behind it, all that time with little impact -- though not to no avail. I have noticed a significant change in the 'junk-to-uptick ratio' on my posts recently, so there are more now seeing something of what I see. That's a good thing and makes me feel good that more are prepared, even if it's not as a result of my efforts, but that of others.

It's now basically too late for us to thwart their plans, though things can still go very wrong for them at any time ... unforseen circumstances have thwarted them many times in the past (eg. they had to do a major re-think back in 1953), and an early collapse of the EZ back to sovereign currencies would be just such a circumstance. A collapse of the EU back to sovereign states, or a sudden secession movement in the US, would be even better. I have my fingers crossed....

Wed, 07/25/2012 - 11:16 | 2649420 JOYFUL
JOYFUL's picture

Dawg...I couldn't respond in a serious vein to yur ecomium of the woLfman, because Stooges puppetry paegant pushed me prefunctorily back into a revery of my yutful days watching the idiot box*...

but it's interesting that yu seem to accord a greater sense of 'reality' to the scripted show on that side of the pond that the Merikan one...whence cometh thy credulity? Is it a case of the grass is always greener?

There is no place in the Euromerik prison zone which has not fallen prey to the false reality paradigm of the dissimulationists by now: therefore there are no outliers of reality left in any of those regions...false narratives such as delivered by the teutonic knight are identical in intent and inveiglement to the efforts of a khazarian kook like Weill, Krugman, Roubini and the rest of the kast[e]...they both seek to set in the minds of the reader the impression of an 'actual' political process ongoing, manage by 'actual' personalities - rather than the stagemanaged show which yu clearly see to be the case in the USA...

I've simply made the same decision about blitzer ritcher as yu have come to about georgieporgie...managed disinfo designed to channel resistors into programmed protest perimeters and divide the western peeples at a time when unity is of paramount importance to their survival.

While I'm still up in the air as to whether the 'final' election farce will come to frutition, I have no fears as to the fate of the Eurozone...it is soon to be a charnel ground of the kind that will make the bloodletting of the "world wars" seem a mere visit to the leecher. Merika will not be spared the same.

*but I do hope u will make the time to go back n see my own paean of praise for "chesty" and the magpies...and catch "mitch the monkey" channeling the Obamanation!

Wed, 07/25/2012 - 12:13 | 2649669 i-dog
i-dog's picture

 

"Eurozone...it is soon to be a charnel ground of the kind that will make the bloodletting of the "world wars" seem a mere visit to the leecher. Merika will not be spared the same."

I see the same, Joyous. And, like you, I'm not located in the midst of either - though I don't think either of us is any the safer for that, just spared from the full initial [metaphorical] "blast"! There is no Switzerland (neutral territory) in this particular global game!

Anyway, I believe they wish to take down the US and Europe in two separate strikes: Firstly the US, to take out the gun-toters and take over the industrial infrastructure and military hardware - without any opposition from the other ZATO members (since TPTB control ZATO anyway). Then, using the US military hardware to deter any possible outside interference, impose the same on Europe in a second "strike". (I say 'strike', though by that I mean martial law, closed borders, food supply chains cut, internal starvation and pestilence ... to unleash a massive cull and the simultaneous chipping of the survivors).

I believe it's possible, though not necessary, for there to be a major war in the ME or Central Asia to get some culling going there, too. It will certainly provide the excuse for martial law in the US, though they don't look like they're needing any excuses at this point! Wars are a very inefficient way of killing people - starvation and pestilence are far more efficient. Nuclear war would also leave too much mess for the survivors to clean up, so I don't expect any nukes going off anywhere, either.

BUT ... if the EU splinters before the above were to play out, then the suddenly independent European states would not countenance Europe-wide martial law. Similarly, if the States of the Union in the US were to achieve a sudden series of secessions, the possibility of nation-wide martial law in the US also practically disappears. TPTB need both central governments to be in place when they push the first domino....

JMO.

(I'll try to check out your recommended videos, but I'm on a painfully slow and patchy internet connection).

Wed, 07/25/2012 - 09:39 | 2648871 MsCreant
MsCreant's picture

Great imagery. I was going to say "metaphor" but honestly, it's literally true, is it not?

Wed, 07/25/2012 - 09:53 | 2648954 Bob
Bob's picture

Agreed, that was breathtakingly true. 

Wed, 07/25/2012 - 08:26 | 2648472 Inthemix96
Inthemix96's picture

One word sums this man up, and it just happens to be my favourite,

Cunt

Wed, 07/25/2012 - 08:32 | 2648499 Doomer
Doomer's picture

How about "sheister".

Wed, 07/25/2012 - 08:33 | 2648506 Inthemix96
Inthemix96's picture

Sorry doomer,

Cunt does just fine

Wed, 07/25/2012 - 09:45 | 2648906 MsCreant
MsCreant's picture

Just to express some oppositional defiant disorder...

I have a cunt. I like it. We all came out of one (unless you did a C section). Plus many of you guys seem to like them. So why degrade this great area of the anatomy by comparing it to a banker? 

Wed, 07/25/2012 - 09:54 | 2648962 Bob
Bob's picture

Don't take it personally!  That's not the cunt we're talking about.  "Dick" just doesn't do it. 

Wed, 07/25/2012 - 10:49 | 2649282 Inthemix96
Inthemix96's picture

Sorry mscreant, you asked for it :-)

An old wise man told me,

What you have between your legs is a pussy,

Its the rest of you that is a cunt.........

(only joking)

Wed, 07/25/2012 - 08:42 | 2648541 Tsunami Wave
Tsunami Wave's picture

I saw him speak on CNBS very briefly.. this guy is nuts! He says having the Euro is a great idea because countries can borrow a whole lotta money. Why is that good??? Why also does it always have to be CFR member Becky not-so-quick that always interviews these retards like Charlie Munger, Buffet, Gates, etc???

Wed, 07/25/2012 - 08:45 | 2648552 terryfuckwit
terryfuckwit's picture

Unfortunately one word in my particular case will not suffice in describing this rancid fuck pig of a lying bastard

Wed, 07/25/2012 - 08:26 | 2648473 TrainWreck1
Wed, 07/25/2012 - 08:27 | 2648476 youngman
youngman's picture

he already stole his...now he wants to shut the door so no one else can steal theirs...what kind of crook is that...he will get kicked out of the tribe for those comments...just a joke what our country has turned into....its like those wind machines filled with cash...its grab as much as you can as long as you can until they kick you out of the machine....that is the banker model now..

Wed, 07/25/2012 - 08:38 | 2648523 Marco
Marco's picture

No, the tribe won't kick him out ... because shrinking down the financial system and government is the end game, he is merely laying some ground work.

What you first said hits to the heart of the matter "he already stole his...now he wants to shut the door so no one else can steal theirs". As long as the financial system and government remains bloated there will come a time when the rich have to start cannibalizing each other to maintain them ... which isn't what they have in mind. When there is nothing left to steal they will shrink the system down so it can't as easily be used against them.

The banks will fall and it's all as planned.

Wed, 07/25/2012 - 09:10 | 2648695 bdc63
bdc63's picture

Yep.  The thought that he is merely expressing his own original ideas that he has been "working through for some time" is laughable.  He is a mouthpiece -- this is all part of the plan.

Wed, 07/25/2012 - 09:25 | 2648801 tip e. canoe
tip e. canoe's picture

my thoughts exactly...he's appearing right on cue.

the meme of a one-world currency controlled by a 'non-private, non-sovereign' bank will intensify shortly.

seems the boyz have realized they've sucked the world dry enough with their current golems and are beginning to prepare us proles for their next creation...all for our own good of course.

next on stage?  watch for Buffett, Bono & Bob Rubin to appear from behind the curtain before you can say Bancor.

Wed, 07/25/2012 - 11:57 | 2649595 mummster
mummster's picture

I agree. This "Lifetime member of the CFR" is just setting the stage so that the "Sheeple" demand that the TBTF banks be broken up and the insiders profit from the disruption this will create. The Mayan Calendar ends on Dec.21, 2012

http://www.adishakti.org/mayan_end_times_prophecy_12-21-2012.htm

 

Wed, 07/25/2012 - 08:50 | 2648568 eddiebe
eddiebe's picture

Exactly and now he's worried about having his life end as a lamp post ornament.

Wed, 07/25/2012 - 08:27 | 2648477 GMadScientist
GMadScientist's picture

Sorry, "Sandy" (if that Jersey hooker moniker is your real name), but we won't forget you, or Chuck Prince, that orange motherfucker from SoCal, Golden-Crapper Thain, or Greenberg, or any of the other dipshits who manage to fail despite every advantage in the world on a consistent basis.

We don't want you "downsized" (as if that meant anything but more work for you when colluding).

We want you fucking extinct.

Wed, 07/25/2012 - 08:28 | 2648481 zilverreiger
zilverreiger's picture

It just occurred to me government must be CERTAIN that they break up the banks evenly, and not into a good and bad part.

Wed, 07/25/2012 - 08:28 | 2648482 Yellowhoard
Yellowhoard's picture

I just had an aneurism.

Weill paid Robert Rubin hundreds of millions of dollars to be his "Vice Chairman" immediately after Glass Steagall was overturned.

Wed, 07/25/2012 - 08:28 | 2648483 marathonman
marathonman's picture

So he has creamed off millions and millions of dollars, financially devastated millions of families, and brought the US to the brink of financial destruction.  Now, that's a legacy.  That's audacity you can believe in!

Wed, 07/25/2012 - 08:42 | 2648534 scatterbrains
scatterbrains's picture

and for these kinds of great achievements our elected leaders in the house and senate everyday get on all fours and lick banking lobby nuts.

Wed, 07/25/2012 - 08:28 | 2648485 Red Pill
Red Pill's picture

Opportunism of the Tribe. Nothing unsual.

Wed, 07/25/2012 - 08:30 | 2648490 Confundido
Confundido's picture

Gold just got a woody...wonder if this is the end of the consolidation, after price suppression followed by S&P downgrade of US credit rating....I guess we will know either by 10am or 1:30pm, when they throw the algo...

 

Wed, 07/25/2012 - 08:38 | 2648522 JustObserving
JustObserving's picture

S&P downgrade? The last time it happened, the CEO, Deven Sharma was gone in 2 weeks.  When Egan Jones downgraded the US on April 5 2012, the SEC took a break from porn and swiftly charged Egan Jones with fraud on April 24 2012.

No one downgrades the US without paying a price.

Wed, 07/25/2012 - 08:30 | 2648491 Doomer
Doomer's picture

Sheister.  Made me want to puke, seeing him on TV.

Wed, 07/25/2012 - 08:31 | 2648493 azzhatter
azzhatter's picture

Sorkin and Quick are orgasming in their chairs over this fucking piggy.

Wed, 07/25/2012 - 08:32 | 2648495 Debt-Is-Not-Money
Debt-Is-Not-Money's picture

"In Defining Hypocrisy, Weill, Who Led Repeal Of Glass Steagall, Now Says Big Banks Should Be Broken Up"

Why not?

He (Weill) got his,

They (the banksters) got theirs,

We got ours (in the end).

And these guys are still walking around...

Sickening!

Wed, 07/25/2012 - 08:32 | 2648500 john146
john146's picture

should be swinging from pole

Wed, 07/25/2012 - 08:33 | 2648505 azzhatter
azzhatter's picture

The douchebaggery of this fucking pig is astounding. Reserve a special lamp post for him today. After his thievery is done, he wants the system to change. In a just world this piggy would be feeding out of a garbage can

Wed, 07/25/2012 - 08:40 | 2648530 ghengis86
ghengis86's picture

It would be nice if someone(s) would start painting the names of these fucks on lamp posts and traffic light poles around Wall Street and CNBC studios.

Wed, 07/25/2012 - 09:26 | 2648808 Self Trader
Self Trader's picture

This Lamp Post is reserved for : ..........   (add favorite Bankster's name).  :-)

Wed, 07/25/2012 - 08:41 | 2648539 Shizzmoney
Shizzmoney's picture

After his thievery is done, he wants the system to change.

This is otherwise known as "Greg Smith's Dilemma"

Wed, 07/25/2012 - 08:35 | 2648514 firstdivision
firstdivision's picture

It still boggles my mind that they felt this was a good thing after S&L's blew themselves up when they eroded Glass-Steagall just a little bit for the S&L's.  It is fucking ridiculous that they felt that letting banks leverage themselves is a good thing...especially after the LTCM debacle.  I would wager the founding fathers would be calling for all involved in revoking Glass-Steagall be hung for treason.

Wed, 07/25/2012 - 08:47 | 2648554 GMadScientist
GMadScientist's picture

Nah, Hamilton would defend em.

 

Wed, 07/25/2012 - 08:48 | 2648563 oldmanagain
oldmanagain's picture

Couldn't agree more, Glass-Steagall is mandantory.  I would also cap risk lower than 18 times.  And all done in full view on exchanges, without algos eating them up.

 

Wed, 07/25/2012 - 08:36 | 2648516 Ted Baker
Ted Baker's picture

NOW THE SWISS ARE SELLING TOGETHER WITH GERMANS THE GBP AND BUYING THE EURO...MAGIC

Wed, 07/25/2012 - 08:36 | 2648517 azzhatter
azzhatter's picture

That cunt Quick just highlighted that Weill will give away 50% of what he stole. I think she's blowing him and Buffett

Wed, 07/25/2012 - 08:37 | 2648518 GMadScientist
GMadScientist's picture

I wonder how good the security at CNBC is when these revolting vermin get on the show...how many people would you need to bum rush the studio and pistol whip these motherfuckers until their shoes are red on live TV?

 

Wed, 07/25/2012 - 08:37 | 2648519 williambanzai7
williambanzai7's picture

MEET SANDY WEILL

Wed, 07/25/2012 - 08:37 | 2648520 nathan1234
nathan1234's picture

Put him on a grill and BBQ him along with Rubin & Clinton.

 

Wed, 07/25/2012 - 08:38 | 2648521 Shizzmoney
Shizzmoney's picture

I love how these guys like Sandy Weill (repealed Glass Steagall) and Richard Fisher (Dallas Fed head who, in FOMC, advocated in 2005 we needed MORE imported shit from China, to drive dollar down as to increase stock prices...to behest of laughing CEOs in room) become revisionist and contrite AFTER they were reasons everything is fucked up.

As Winston Churchill said, "The Americans will do the right thing......right after every other option has failed."

Plus, the breaking up of big banks, which NEEDS to happen, won't until a systemic collapse happens in economic markets.  Like, I mean, the DOW loses 50% or more.

There needs to be blood in the streets for change to happen; the current human psyche in Western Civilizations is too lucid and contempt to allow it otherwise.  That, and the American populace as a whole, is really fucking dumb, with the oligarchs (who think they are the smartest people in the room) leading the Fail Parade.

The Cubs have a better chance of winning a World Series in my lifetime than Glass Steagall being reinstated.  

Wed, 07/25/2012 - 08:40 | 2648528 lizzy36
lizzy36's picture

So the dude make $100's of millions, helped destroy the banking system, helped destroy the US economy and NOW gets religion.

He should peddle that born again crap to a less cynical crowd. Thinking a bunch of 3 years olds.

Men like him caused this shit-show. They sure as hell aren't going to clean this crap up. They should be forced to go to an island and play some sort of Darwinian Game of Thrones.

Wed, 07/25/2012 - 08:43 | 2648543 GMadScientist
GMadScientist's picture

Lord(s) of the (F)lies.

Wed, 07/25/2012 - 09:00 | 2648621 azzhatter
azzhatter's picture

It's just so funny how ignorant fucks like Sorkin and Squicky think the problem is now the solution

Wed, 07/25/2012 - 13:56 | 2650037 Cardinal Fang
Cardinal Fang's picture

We make money the old fashioned way...we CHURN it.

Wed, 07/25/2012 - 08:40 | 2648529 ReactionToClose...
ReactionToClosedMinds's picture

gotta believe that Chriss Dodd figures somewhere in all this.  Maybe that is when he decided to become a 'candidate' for USA President when no one solicited him to run or he had no chance to win.  But the honorable Senator from CT gets to keep all the presidential campaign money ..... wonder that!

Where was the Hartford Courant or any other CT newspaper to 'report' this blatant payoff?  Nothing to see here muppets ... move along

Wed, 07/25/2012 - 08:46 | 2648555 Shizzmoney
Shizzmoney's picture

NVM the sweet loan Dodd got on a house from Countrywide from being a "Friend of Angelo". 

When I saw his name on the "reform bill", I laughed.  And after his threatening of Obama and Holyywodd campaign contribution as head of the MPAA (re: SOPA), fuck that guy.  Fuck him and the 3 legged retard fail horse he rode in on.

Wed, 07/25/2012 - 08:41 | 2648537 sudzee
sudzee's picture

Quick, shift all toxics to the banking side, taxpayers will be on he hook for it.  

Wed, 07/25/2012 - 08:42 | 2648540 q99x2
q99x2's picture

Financial Terrorist. Lamp Post Candidate.

Wed, 07/25/2012 - 08:44 | 2648548 Tom Green Swedish
Tom Green Swedish's picture

Finance / Economics is a science experiment just like everything else.  He tried out his hypothesis and it didn't work.  The only thing you need to do is not listen to him, and learn from his mammouth mistakes.

Meantime the bankers are my homies still

 

http://www.youtube.com/watch?v=E_yVRZMFbLc

Wed, 07/25/2012 - 08:47 | 2648557 RobotTrader
RobotTrader's picture

Sandy Weill is the "Ultimate PigMan".  Man, that guy has everybody in his back pocket, he lives like a king, hob knobs with all the celebs, always surrounded by beautiful women, has the most expensive apartment on Central Park.

 

Basically, he lives the lifestyle that every young gun on Wall St. aspires to.

In stark contrast to the disheveled Charles Biderman, who looks like his head is about to explode from anger.

Or James Grant, who looks like he just emerged from a concentration camp.

Or any number of bears, doom and gloomers, etc. who are still driving 2002 Buick Centurys.

Wed, 07/25/2012 - 08:52 | 2648583 eddiebe
eddiebe's picture

Yep, stars and stripes, baby! It works til it doesnt.

Wed, 07/25/2012 - 08:54 | 2648589 Tom Green Swedish
Tom Green Swedish's picture

“The surest way to remain poor is to be honest”

Napolean

Wed, 07/25/2012 - 09:58 | 2648978 falak pema
falak pema's picture

he did everything in his power to move himself and his family out of that rut! 

His youth must have marked him as they were poor in Corsica.

Lies and ambition go hand in hand, just like a beautiful woman likes being covered in diamonds. 

Wed, 07/25/2012 - 10:06 | 2649021 Bob
Bob's picture

Nothing succeeds like success, Robo.  Having read the book, Manson had a hell of a good time, as did his crew . . . until the party was over. 

Just carve that dollar sign into your forhead . . . we won't wanna miss ya in the crowd of rats once the flight begins in earnest.   

Wed, 07/25/2012 - 10:14 | 2649063 MsCreant
MsCreant's picture

You really think those other guys you listed are poor?

You really think Sandy Weill looks good?

You wear some strange glasses Robo. 

Wed, 07/25/2012 - 08:47 | 2648560 ReactionToClose...
ReactionToClosedMinds's picture

what is stunning is that the S&L crisis, which literally caused a recession (I will never forget the WSJ reports that federal bank auditors were shifting from Texas & Southwest to Boston ... then withing days all banks in the Northeast started shutting down credit access to their business clients).

Yet so soon after everyone ignored Bill Seidman.  Not even a generation had passed before we doubled down on the folly.

I finger Rubin myself as the epicenter of all this

Wed, 07/25/2012 - 08:47 | 2648561 redarrow
redarrow's picture

After all these years, did he grow a conscience? ... the likes of him trashed the system for a few dollars more. Now that 

he is a ripe old man and has so much money than he could possibly need, he comes around and does a monkey full

swing on TV. Chimps like him either show us their frontal or rear. A perfect chimp.

 

 

Wed, 07/25/2012 - 08:51 | 2648575 rufusbird
rufusbird's picture

For those of us who have not yet mastered the art of avoiding making mistakes, the next best thing is to recognize them, admit them, and correct them as soon as possible.

Wed, 07/25/2012 - 08:52 | 2648581 LarryDavis
LarryDavis's picture

wow i just saw that interview. zero hedge is fucking sick. i could tell this guy was a real lowlife. its very palpable. thanks for the insight zero hedge you keep it too fucking real.

Wed, 07/25/2012 - 08:53 | 2648585 lizzy36
lizzy36's picture

This will make you all hurl alternatively lock and load:

Chart: '' The Chairman's Legacy''
Over the last 10 years, Sanford I. Weill, has had about $953 million in compensation . . .

Graph tracks the following for Sanford I. Weill compensation from 1995-2004:
Salary and bonus
Value realized on stock

Totals in millions

1995: $47.3
1996: $91.
1997: $227.4
1998: $163.7
1999: $85.4
2000: $215.7
2001: $33.9
2002: $12.8
2003: $53.4
2004: $21.7

 

........believed that the new endeavor would be competitive and told Mr. Weill that if he left early to pursue it, he would have to forgo some retirement perks, including the use of the company's private jets.

http://query.nytimes.com/gst/fullpage.html?res=9401E3DA1331F932A2575AC0A9639C8B63&pagewanted=all

Wed, 07/25/2012 - 09:00 | 2648624 Tom Green Swedish
Tom Green Swedish's picture

The silly thing is they were growing like a weed during all the regulations.  The ensuing growth was false.

Wed, 07/25/2012 - 09:19 | 2648770 FRBNYrCROOKS
FRBNYrCROOKS's picture

That articles made me physically ill after seeing that prick on CNBC. I puked in my trash can!!

Wed, 07/25/2012 - 10:49 | 2649277 resaci
resaci's picture

 

 

PROSECUTE, CONVICT AND EXECUTE;

BANKERS, CAREAR POLITITIONS, LOBBYIST'S, CORPORATE ENABLERS (CEO, BOARD OF DIRECTORS)

CLAW BACK EVERTHING OF THE CONVICTED

RESTORE PERSONAL RESPOSIBILITY

DO IT NOW!

 

Wed, 07/25/2012 - 08:58 | 2648604 darteaus
darteaus's picture

There must be plenty of fees to be made in the breakup.

Wed, 07/25/2012 - 08:58 | 2648605 the not so migh...
the not so mighty maximiza's picture

Weill meet lamp post

Wed, 07/25/2012 - 08:59 | 2648613 oldmanagain
oldmanagain's picture

It took a lot of guys to wreck the banking system.  And a congress that is for all practical purposes doing their bidding.

It is amazing that Social Security is blamed for our troubles when it is the only thing we paid for.

Wed, 07/25/2012 - 10:12 | 2649047 Bob
Bob's picture

Michael Hudson: The Road to Debt Deflation, Debt Peonage, and Neofeudalism

http://www.iadb.org/intal/intalcdi/PE/2012/09985.pdf

The Road to Serfdom is long and, ironically enough, it hasn't been the one everybody was watching out for. 

Wed, 07/25/2012 - 10:29 | 2649148 tip e. canoe
tip e. canoe's picture

thanks for sharing Bob.    this except is pure gold imho.

 

In biological nature a smart parasite will keep the host alive and even help it find new sources of food, and perhaps keep it disease-free in a symbiotic relationship. The aim, of course, is to obtain most of the nourishment for itself and its offspring, over and above the basic subsistence level needed to keep the host alive.  

But parasites shorten their time frame as they approach the end stage of the relationship with their host. Realizing that the game is nearly up, the free luncher does the equivalent of taking the money and running. It may encourage its host to act recklessly and be eaten by its own natural predator. A parasitized insect, for example, may lower its defenses and be eaten by a bird, which will become the new host for the parasite’s eggs to hatch within it. The parasite’s progeny will start a new life, higher in the food chain where the numbed and value-free host has ended up being “globalized.” 

 Alternatively, the parasite lays its eggs in the host directly, to hatch and devour its body as their food supply. This is essentially what occurs when the inexorable mathematics of compound interest absorbs the “real” economy’s profits, disposable personal income, and tax revenue. Since economies were stricken in September 2008, the financial sector has adopted a hit-and-run business plan, using its control of the host economy’s brain (government agencies, above all the Treasury and Federal Reserve) to give it bailouts, and threatening to paralyze the host economy by stopping its circulation of payments if it does not get its way.  

 

Wed, 07/25/2012 - 09:02 | 2648629 Vince Clortho
Vince Clortho's picture

Conscience my arse.

This man sees his place in history as one of the architects  of a plot, which will bring about catastophic suffering on a global scale.

Damage control, propaganda, and trying to reshape his image:  Yes

Conscience:  No.

Wed, 07/25/2012 - 09:02 | 2648638 Glass Steagall
Glass Steagall's picture

Somebody call me?

Wed, 07/25/2012 - 09:46 | 2648640 falak pema
falak pema's picture

Well we haven't seen anything yet! 

One day we will have Rumsfeld, Cheney and GWB coming on to CNN or Fox news to say to the world :

We all knew all along that :

a) OBL was just a front for Saudi Wahhabist stunt and we played along to keep our oil patch friends happy. We even gave them a little bit of help on 9/11!  

b) In the aftermath we targetted Sadam, now mortal enemy to Sauds, as common fall guy; we stage managed the WMD scam and then we took him out to keep Sunni Islam totally under Saudi influence; our OTHER friend in oil patch along with Jerusalem. 

So you see we did God's work in ME for the glory of Pax Americana, as well as our own; the Carlyle group! 

Hypocrisy was Nero's middle name when he burnt Rome, played the lyre and then crucified the Christians.

That's hypocrisy, all the way to gutter the slaves! 

Its called being a compassionate christian today in "sincere" repentance.

I wonder if the original christians would appreciate that at its true face value; being a christian today and repenting like Sandy did. 

Wed, 07/25/2012 - 09:03 | 2648645 Sutton
Sutton's picture

Shyster

Wed, 07/25/2012 - 09:08 | 2648676 FRBNYrCROOKS
FRBNYrCROOKS's picture

CNBC probably paid that pos to appear. Sorkin, Mr. "I'm so outraged at TBTF" sucking up to that douche bag.

Any body know if the HR 459 was passed my the House yesterday?

Wed, 07/25/2012 - 09:10 | 2648684 Benjamin Glutton
Benjamin Glutton's picture

In response to what he thinks of Geithner....Sandy Weill,"When I was at the N.Y. Fed I would get nervous I would ask the Office of the Comptroller of Currency(people)into my office to tell me what I should be nervous about(in my business)...then I would run down to the trading floor and you know."

no we don't but please continue.

WTF?????

last thing he said at 8:59am...low blood sugar.lol

 

 

Wed, 07/25/2012 - 09:10 | 2648691 slackrabbit
slackrabbit's picture

Me thinks he smells the mobs brands and torches...

Wed, 07/25/2012 - 09:10 | 2648697 Yes_Questions
Yes_Questions's picture

 

 

the man who sold the world

Wed, 07/25/2012 - 09:12 | 2648713 Mrmojorisin515
Mrmojorisin515's picture

Maybe, just maybe, he's that scared of losing everything he cheated for, and he now wants failsafes to protect his stolen wealth

Wed, 07/25/2012 - 09:15 | 2648738 ella
ella's picture

He must think that he can make more money from a break up.  What a wonderful patriot.  He must be part of the "Country First" group.  or is it "Me First"  It is all so confusing.

Wed, 07/25/2012 - 10:02 | 2649003 MsCreant
MsCreant's picture

"He must think that he can make more money from a break up."

It is the only answer there is. He has his game plan, he is locked and loaded. He does not see "the mob" assembling with their ropes at all. This is a big assed chess game or perhaps a game of poker or RISK would do better here. He has his chips, he is at the table. He is out FTMFW. 

Wed, 07/25/2012 - 09:41 | 2648743 Bicycle Repairman
Bicycle Repairman's picture

Sandy Weill leading financial reform..... Interesting idea. Let's run Sandy up a lamppost and see if anyone salutes.

Wed, 07/25/2012 - 09:17 | 2648753 SmoothCoolSmoke
SmoothCoolSmoke's picture

Too quote my favorite Bourbon St. t-shirt:

Fuck you

You fucking

Fuck

 

Wed, 07/25/2012 - 09:20 | 2648778 yrbmegr
yrbmegr's picture

And he is only calling for its return because he will personally profit from it.  I don't know how, but he sure does.

Wed, 07/25/2012 - 09:28 | 2648818 Everybodys All ...
Everybodys All American's picture

These banks should not be broken up they should be shut down. They are insolvent by any real fiancial measure. Anyone want to take that on? That's what should be done and will not because of the continued Fed Reserve nonsense. Move the interest rates back up to where they historically would be and these banks are all facing bankruptcy.

Wed, 07/25/2012 - 09:28 | 2648822 lagrossebertha
lagrossebertha's picture

The Quarterly Journal of Austrian Economics has a rather critical article on the glass steagall act : for one, it was pushed thru by the rockefellers to bitch the house of morgan, and for what regards the financial stability argument, the author believes cutting commercial banks from security investment creates an inherent liquidity problem as loans are not necessarily less risky than security investments.

for those who'd like to consider it : http://mises.org/journals/qjae/pdf/qjae1_1_1.pdf

Wed, 07/25/2012 - 10:45 | 2649089 Bob
Bob's picture

Try finding a "free market" solution that they don't cheerlead, regardless of its absurdity wrt the real world (including elimination of G-S at the time of its "reform.")  Neoliberalism never fails . . . except due to the world not being neoliberal enough

Note that this article was published in 1998.  What's happened since is, to most people, proof that his claims against the always contemptable "public interest" argument are perniciously misguided. 

Yet, there it is, in a place of pride at the Mises Institute,  "Advancing the scholarship of liberty in the tradition of the Austrian School."

Wed, 07/25/2012 - 09:29 | 2648826 Omen IV
Omen IV's picture

this reversal is a seminal moment despite all the ranting on this blog - Weil is saying the obvious - the banks are a mess and cannot operate any longer with this system - Dimon proved it with his management of the CIO group

Weil is Joe Kennedy circa 1933 becoming the first head of the SEC when it was created - he knew the other side and was responsible for a lot of the destruction in the 20's so he was a natural fixer - Weil has a lot of the same baggage

Weil entry to the fray has called the bottom in banking as did Kennedy - it now will start to be changed

 

 

Wed, 07/25/2012 - 09:31 | 2648834 GreatUncle
GreatUncle's picture

How does a person like this retain his worth the way the economy is going? Easy answer of course in a "taxpayer bailed out bank".

But how do you keep the wealth? Again rather easy put the banking system back to the way it was and keep all your profits from what you got away it.

Good that, created the mechanism, generated his wealth through the modified mechanism then wants to close the door so nobody can follow or take it back.

Is that right Mr Weil? I believe so.

Now an ordinary person through all of this will go to hell in a handcart. The joke part is if the banks go bust or not your path is already set.

So the whole concept to break up the "to big to fail banks" is not in your interest but soley with all those who need somewhere to stash their wealth safely.

The economic system needs purging but those with the most to lose seek to change it before it happens and hence all the talk of recapitalising the banks.If this does not happen first rich or poor suffer the same recaptialising only the poor suffer.

That is all that is happening and the reverse psychology for you.

He knows his wealth is goosed if the to big to bailout banks fail and suggesting this seems to imply the ability to fully recapitalize the too big to bailout banks may be too late.

 

Wed, 07/25/2012 - 09:38 | 2648863 Seasmoke
Seasmoke's picture

Sandy Weill is Joe Kennedy reincarnated !!!

Wed, 07/25/2012 - 09:40 | 2648878 Seasmoke
Seasmoke's picture

Sandy Weill is on the Long list of pitchforks and rope......He may be at the bottom of the list with a W , but make no mistake, he is on the list

Wed, 07/25/2012 - 11:20 | 2649429 Manthong
Manthong's picture

Definitely a seat in the glass cage in the Court of the Financial Revolution for him.

Wed, 07/25/2012 - 09:41 | 2648883 neutrinoman
neutrinoman's picture

Certainly, Weill is a scumbag and doesn't deserve the fawning attention he gets. But the biggest culprits rarely appear on TV.

There's too much obsession about Glass-Steagall and the large banks on ZH. Think back to 2008 and recall who was in fatal trouble. Only one major commercial bank, Citigroup, was. The rest were not regular commercial banks: nontraditional lenders (Countrywide, WaMu), large investment banks (Merrill, Bear, Lehman), an insurance company (AIG), and -- by far the largest failures -- two GSEs (Fannie, Freddie). The thread running through all these cases is TOO MUCH CONCENTRATION IN RESIDENTIAL MORTGAGES.

That concentration was a result of bad government policy, one that the major culprits mostly still refuse to acknowledge, including members of Congress, the Fed, the SEC, and so on. There's no elected politician more responsible for this than Clinton, and the network of people responsible for the subprime and general mortgage bubbles all converge on FOBs: Robert Rubin and his protoge Peter Ozsag (Citigroup), Arthur Levitt (head of Clinton's SEC), James Johnson (head of Fannie and Mondale's 1984 campaign chief), and an army of Democratic donors from Wall Street. It was Clinton who transformed the Democratic party into a party of the glitterati. Under Obama, many of these people have reappeared: Geithner, Orzag, Summers, Corzine, etc. Certain Republicans, like Greenspan and Bernanke, played critical roles as well; even the goofy Gingrich caught on and got in on the Fannie-Freddie lobbying gravy train. (And it is a mighty gravy train.) But the push for ever larger flows of ever cheaper credit was a conscious policy and, in the first instance, a Democratic policy.

That said, a return to Glass-Steagall wouldn't be a bad thing. By itself, it would not have prevented the mortgage bubble, however. If not Glass-Steagall, than another approach is needed, one that separates the largest TBTF, European-style "universal" banks from the smaller "plain vanilla" take deposits-make loans sort of banks and regulates them differently. Anything to get rid of the Dodd-Frank monstrosity, which did nothing to address this question and which puts smaller banks under expensive and unnecessary regulatory burdens. It's already leading to sluggish credit growth. And it's cutely named after those two clowns who were responsible for masking the GSEs' problems until it was too late to do anything. Fortunately, Dodd is out of the Senate; and Frank is stepping down -- even in Massachusetts, voters are now on to Frank, and he might have lost in a very liberal district.

Something else needs to happen too, the rollback of another 1990s transformation, the conversion of investment partnerships and investment houses into limited liability corporations and the merging of investment firms with brokerages. This has created a large conflict of interest, evidenced best by Goldman and its fleecing of the "muppets." The broker-advisor part recommends to clients the very securities that the investment part is dumping. Another Clinton-era mistake, the Safe Harbor Act, is worth repealing -- might have saved the MFG and PFG customers.

Glass-Steagall or something like it is my preference -- let us NOT have European-style "universal" banks. They're too big, too difficult to regulate, too tempting for politicians to use as vehicles for cheap credit schemes, and have too much concentrated political influence. The argument was, in the 1990s, that the US needed to be like the rest of the world in the banking area -- but look at what happened in Asia in the late 90s, or what's happening in Europe now.

Here is a massive case of political malfeasance. Something similar has happened in Europe, with peripherals playing the role of subprime borrowers and "universal" banks ballooning into monstrous size. The bankers have benefitted as middlemen, but they're not the source of the bad policy. And then there's reforming and reigning in the Fed, Wall Street's pusher of choice ....

Wed, 07/25/2012 - 09:42 | 2648894 yogibear
yogibear's picture

Weil knows how started the push for mark to fantasy and hiding the trash loans. Now that everyone is doing it he knows it doesn't bode well for future.

Wed, 07/25/2012 - 09:43 | 2648897 optimator
optimator's picture

Sandy's retired now, simply helping his daughter.  What guy!

Wed, 07/25/2012 - 10:09 | 2649031 Self Trader
Self Trader's picture

Give us a break, save us the rope :  JUMP YOU FUCKERS !

http://www.youtube.com/watch?v=gmcyquL99NI

 

Wed, 07/25/2012 - 10:14 | 2649059 JR
JR's picture

Jesse’s Café Americain wrote in August 08, 2010: Now might be a good time to re-read The Quiet Coup by Simon Johnson which appeared in The Atlantic Magazine. EXCERPT:

Although he keeps using the term "emerging market governments" in fact he is discussing a post bubble country that has experienced a period of express, fostered by a partnership between business and government that is known as crony capitalism.

Here is his description of the rise of the financial sector in the US from his book, 13 Bankers, which describes how the rise of concentrated financial power poses a threat to economic well-being is a must read as well.

"The financial industry has not always enjoyed such favored treatment. But for the past 25 years or so, finance has boomed, becoming ever more powerful. The boom began with the Reagan years, and it only gained strength with the deregulatory policies of the Clinton and George W. Bush administrations. Several other factors helped fuel the financial industry’s ascent. Paul Volcker’s monetary policy in the 1980s, and the increased volatility in interest rates that accompanied it, made bond trading much more lucrative. The invention of securitization, interest-rate swaps, and credit-default swaps greatly increased the volume of transactions that bankers could make money on. And an aging and increasingly wealthy population invested more and more money in securities, helped by the invention of the IRA and the 401(k) plan. Together, these developments vastly increased the profit opportunities in financial services.

”Not surprisingly, Wall Street ran with these opportunities. From 1973 to 1985, the financial sector never earned more than 16 percent of domestic corporate profits. In 1986, that figure reached 19 percent. In the 1990s, it oscillated between 21 percent and 30 percent, higher than it had ever been in the postwar period. This decade, it reached 41 percent. Pay rose just as dramatically. From 1948 to 1982, average compensation in the financial sector ranged between 99 percent and 108 percent of the average for all domestic private industries. From 1983, it shot upward, reaching 181 percent in 2007."

I have not read his book yet, but it's on my list. I hope he includes some information on the decade long campaign to repeal Glass-Steagall, led by Sandy Weill and Robert Rubin, which opened Pandora's box in 1999. It is a mistake to view what happened as some accident, or a natural development. It was a pre-meditated campaign to subvert the economy and the political protections of the vast majority of US citizens.

In the meanwhile, here are a few quotes from his piece in Atlantic Magazine which is a prelude piece to his book.

Typically, these countries are in a desperate economic situation for one simple reason—the powerful elites within them overreached in good times and took too many risks. Emerging-market governments and their private-sector allies commonly form a tight-knit—and, most of the time, genteel—oligarchy, running the country rather like a profit-seeking company in which they are the controlling shareholders.

But inevitably, emerging-market oligarchs get carried away; they waste money and build massive business empires on a mountain of debt. Local banks, sometimes pressured by the government, become too willing to extend credit to the elite and to those who depend on them. Overborrowing always ends badly, whether for an individual, a company, or a country. Sooner or later, credit conditions become tighter and no one will lend you money on anything close to affordable terms.

"Squeezing the oligarchs, though, is seldom the strategy of choice among emerging-market governments. Quite the contrary: at the outset of the crisis, the oligarchs are usually among the first to get extra help from the government, such as preferential access to foreign currency, or maybe a nice tax break, or—here’s a classic Kremlin bailout technique—the assumption of private debt obligations by the government. Under duress, generosity toward old friends takes many innovative forms. Meanwhile, needing to squeeze someone, most emerging-market governments look first to ordinary working folk—at least until the riots grow too large."

The Banks must be restrained, and the financial system reformed, with balance restored to the economy, before there can be any sustained recovery. ...
http://jessescrossroadscafe.blogspot.com/2010/08/recommended-re-read-quiet-coup-by-simon.html

Wed, 07/25/2012 - 10:33 | 2649180 Missiondweller
Missiondweller's picture

Hey, let's not doubt his sincerity.......

 

let'e just ask for a 20 year clawback in profits from Weill.

Wed, 07/25/2012 - 10:40 | 2649233 Self Trader
Self Trader's picture

Quote : 

"I could have exterminated ALL Jews from the face of the planet.

However, I let a few survive, so that you could know why I killed them."

Adolf HITLER

Wed, 07/25/2012 - 11:46 | 2649547 Kastorsky
Kastorsky's picture

jew again?! wtf? 2%?

Wed, 07/25/2012 - 12:19 | 2649699 Bloodstock
Bloodstock's picture

Wanted posters should be posted throughout the world.

Do NOT follow this link or you will be banned from the site!