sandy weill is downsizing. he got rid of the plane and penthouse, selling that for $88 million last year and now he is selling the yacht for $59 million but so far there are no takers. weill told me i think simpler is better. spending more time in their home in california. focuses more on fill lant pi rather than spending. sit part of the new larger life view that bigger is not always better. >> very interesting stuff there. i guess with time and experience that your mentality changes. that certainly was not the case when he was in big business. >> he said look, i'm getting older. the kids are getting older. your life view changes and now he wants a simple life. >> thank you so much. let's get more of tomorrow's actions tonight. 30 seconds on the clock. our guests will tell us what they think will move the markets tomorrow. >> stephanie, we pick it up with you. what do you want to watch tomorrow? >> three companies that are reporting earnings. ipaper is the larger paper manufacturer. the guy tans is going be co

sandy weill was right today. the other thing, big surprise, tim geithner going on the hill protecting the status quo of the too big to fail banks yet again. >> sheila behr, richard fisher, dallas fed head, tom hoenig, kansas city fed head at the fdic are all saying the same thing, that banks should be broken up. how do you see it? >> well, we have to start with the proposition which mr. weill was advocating to reinstate glass-steagal will recollect. the debate has gotten off track. when you talk today about reinstating glass ste e agall ar the volker rule it is prohibiting bank affiliates from underwriting, being market makers and engaging in hedging activities. all three of these activities have been termed by chairman volker himself to be beneficial to our economy and society. >> not in the commercial bank aspect. he said he doesn't care where they do it. he's not opposed to market making, dderivatives, synthetic. just don't do it in the banks because the taxpayers are behind them. that's my understanding of th

former citigroup chairman and ceo sandy weill was the guest host. it was only on cnbc. >> what we should probably do is go and split up investment banking from banking. have banks be deposit takers. have banks make commercial loans and real estate loans. and have banks do something that's not going to risk the taxpayer dollars. that's not going to be too big to fail. if they want to hedge what they're doing in their investments, let them do it in a way where it's marked to market. >> that's a radical idea, though. breaking up the investment banks and banks. are you suggesting going back and breaking the companies up? >> that's exactly what i'm suggesting. >> when i say i'm speechless i'm speechless. i apologize. >> all right. let's get to the washington side of this story. republicans and democrats quick to react on the hill and john harwood has that reaction live in d.c. hi, john. >> reporter: hi, ty. when sandy weill makes a statement it gets people talking on wall street and washington. that's what happened at a hearing and after a hearing of the

not sandy weill's. it's one thing to hear people like me or barney frank or the president say these things but an insider as the architect of the measures looks back and recognizes just how dysfunctional they have been for the markets and the reputation of the market sector, we all ought to be listening. >> jared, you agree with sandy weill? >> i deeply agree with him. maybe more accurate to say he finally disagrees with me. >> does this render the beast that dodd-frank and the voel kerr rule intended to tame worthless? are those laws needed if we do what's suggested? >> perhaps the volcker rule could be preempted by the kind of suggestion and sandy speaking with clarity about this i found it pretty convincing. just look at the jpmorgan london whale story. was ate proprietary trade or not? >> i think it was. if you hive them off that way, it obviates the questions. >> what's amazing is banker's remorse in the last few years. right? you mentioned phil purcell. i mean, does it matter they're coming out sa

firstum, business leader sandy weill, the former c.e.o. of citigroup went on tv yesterday and said this. >> i think what we should probably do is go and split up investment banking from banking, have banks be deposit takers, have banks make commercial loans and real estate loans, and have bank do something that's not going to risk the taxpayer dollars, that's not going to be too big to fail. >> jon: i'm sorry, you know what? that guy didn't sound like an ass at all. he's saying we should return to the glass-stegall act, which separated commercial banking until 1999, which set in motion the entire financial debacle in the days that followed. how did it goat repealed. perhaps the memoir of one sandy weill can give us a clue. >> we had been lobbying congress for months to overturn the depression-era glass-stegall act. ( laughter ) ( applause ) >> jon: oh, right. it was you! it would be one thing if sandy weill was saying, hey, we never should have repealed that law. but that's not what he's saying. >> i think the world changes and the world t

but as you said, sandy weill is in many cases the father of the financial supermarket. when he joins the conversation, sit a game-changer? >> well, i hope so. i think there's a lot of momentum-building and recognition. this just makes sense from pretty much everybody's perspective. so i do -- like i said, i think it's a little late. i wish he'd had these views back in the late '90s. but obviously i agree with him. and i think it will make people pay more attention that this really is a realistic option and it is the best way to go, again, from the market's perspective as well as from the government's perspective. >> what about that the shareholder's perspective? what would a shareholder get out of a break-up of the big banks? you made the comment before that, i believe it was in an article you wrote, shareholders have a an interest in demanding that big banks break apart, you said in the past. >> i do. the mega banks, their share prices trade at very steep discounts to their tangible book value. they didn't really deliver good shareholder value even prior to the crisis.

sandy weill. thank you for being here. >> thank you. good to be here. >> there are so many people who want to get your view on europe and libor. i want to get your view on what's happened over the last seven years. you've been known as a visionary and i can just wonder in retrospect, very few people saw the financial crisis coming. in looking back, do you think the mega banks played a role in terms of too big to fail in what happened with the financial crisis or not? >> let me first start by saying that i think the two decade bfs the problem, the big banks really led the growth of the world and creating capital markets and all these countries, converting communist economies they' they've, as defined in different part of the world. so the banking system is really very, very important. i think the problem that was created was created by too much way too much leverage. very little transparency with lots of off balance sheet things that downreally count. but even of a the problem, there's no other cou

what do you think about sandy weill's comments? what's the chance your buddy, neal wolan here will enact policies that could break up the big banks more so than dodd-frank already does? >> so i thought sandy weill's comments were obviously very interesting yesterday, and it's something that i think has to be explored, but it has to be done carefully. you know, these are highly complex institutions, and taking them apart, if you will, is equally complex, you know, in terms of what my friend, neal wolan and his colleagues would do, i think they've done an awful lot so far, and i think you need to give that a chance to work, but in terms of what further steps might be necessary, i think you know, what sandy weill suggested yesterday is certainly something that's worth exploring, but carefully. >> what would the secretary think about this idea, neal? >> i think you'd have to ask him. >> where are you really? i just want to pin you down. do you think he's right or he's wrong? it's one thing to say it should be explored. it's another thi

weill the biggest financial tower the best one of our. i mean this guy american express you know totally connected to the guys down at the docks you got shares of lehman otten involved in a wholesale flew through the sub a lot of fun sandy weill got to be considered one of the top crony guys in that nineteenth ernie's horrid period of. dr seuss' anyone else's there is a. well you mention financial terrorism so let's talk about some financial terrorism and bring it back to the first half of the show which is that you know where is the crime and punishment and tony blair says we shouldn't be hanging bankers headline reads investment banker fifty eight arrested after smashing windows with a slingshot and marbles because he got a thrill from it a hot shot investment banker fifty eight has been arrested accused of wreaking havoc in los angeles michael. has allegedly been driving around shattering windows since the beginning of the year using a slingshot to fire marbles and not have buildings police said he must have got a thrill from it the ba

so boy did sandy weill raise more than eyebrows yesterday when the former chairman and c.e.o. is citi group said anough with these too big to fail banks take a listen i'm suggesting that they be broken up so that the taxpayer will never be the risk. they deposit it won't be at risk the leverage of the banks will be something reasonable and the investment banks can do trading and not subject to book or rule that they're not subject to not being there when they can make some mistakes. now the ironies should not be lost as sandy weill was at the helm of citigroup when it was becoming the behemoths it is today he was instrumental in pioneering the one stop shopping bank model even violating remaining provisions of glass steagall at the time in the process here is inside jobs filmmaker and predator nation author charles ferguson talking to us about it take a listen. citi group wanted to acquire travelers fact it did acquire travelers before the glass steagall act was repealed and so it was at the time an illegal combination of a commercial bank and an investment bank was travelers

do you agree with sandy weill's call to break up the banks? tomorrow, barney frank will be with me weighing in on the potentially hot news of breaking up the big banks. we have paul ryan on deck today, is a short break and then more market coverage. up 56 points right now with 30 minutes until the closing bell sounds. >> new regulations mean nothing and regulators are not enforcing existing rules on the book. we need regulators doing their job. >> that's the chairman of the house agricultural committee for not cating the -- pergrime scandal. if you are one of the millions of men who have used androgel 1%, there's big news. presenting androgel 1.62%. both are used to treat men with low testosterone. androgel 1.62% is from the makers of the number one prescribed testosterone replacement therapy. it raises your testosterone levels, and... is concentrated, so you could use less gel. and with androgel 1.62%, you can save on your monthly prescription. [ male announcer ] dosing and application sites between these products differ. women and children s

so boy did sandy weill raise more than eyebrows yesterday when the former chairman and c.e.o. as citi group said anough with these too big to fail banks take a listen i'm suggesting that they be broken up so that the taxpayer will never be the risk. they deposit it won't be at risk the leverage of the banks will be something reasonable and the investment banks can do trading and not subject to book or rule that they're not subject to not being there when they can make some mistakes. now the ironies should not be lost as sandy weill was at the helm of citigroup when it was becoming the behemoths it is today he was instrumental and pioneering the one stop shopping bank model even violating remaining provisions of glass steagall at the time in the process here is inside jobs filmmaker and predator nation author charles ferguson talking to us about it take a listen. citi group wanted to acquire travelers fact it did acquire travelers before the glass steagall act was repealed and so it was at the time an illegal combination of a commercial bank and an investment bank is travelers

by sandy weill the biggest financial charge the battery. i mean this guy american express you know totally connected to the guys down at the docks you got shares of lehman hotton involved in the whole sale fleet every other subway loader front sandy weill got to be considered one of the top crony guys in that nineteen thirties horrid period of. dr seuss anyone else's there is a. well you mentioned financial terrorism so let's talk about some financial terrorism and bring it back to the first half of the show which is that you know where is the crime and punishment and tony blair says we shouldn't be hanging bankers haven't reads investment banker fifty eight arrested after smashing windows with a slingshot and marbles because he got a thrill from it a hot shot investment banker fifty eight has been arrested accused of wreaking havoc in los angeles michael. has allegedly been driving around shattering windows since the beginning of the year using a slingshot to fire marbles and not have buildings police said he must have got a thrill from it

weill got to be considered one of the top crony guys in that nineteenth ernie's horrid period of. dr seuss or anyone else's there is a. well you mention financial terrorism so let's talk about some financial terrorism and bring it back to the first half of the show which is that you know where is the crime and punishment and tony blair says we shouldn't be hanging bankers headline reads investment banker fifty eight arrested after smashing windows with a slingshot and marbles because he got a thrill from it a hot shot investment banker fifty eight has been arrested accused of wreaking havoc in los angeles michael. has allegedly been driving around shattering windows since the beginning of the year using a slingshot to fire marbles and not have buildings police said he must have got a thrill from it the banker max was from u.b.s. right and we wish him the report of that out of shame for the artist put chalk in for a chase and was arrested there's a u.b.s. banker marbles and slingshots breaking windows and he's like oh well he's just getting ready but of course u.b.s. my friends my

so boy did sandy weill raise more than eyebrows yesterday when the former chairman and c.e.o. is citi group said anough with these too big to fail banks take a listen i'm suggesting that they be broken up so that the taxpayer will never be the risk. they deposit it won't be at risk the leverage of the banks will be something reasonable and the investment banks can do trading and not subject to book or rule that they're not subject to not being clear that they can make some mistakes. now the irony should not be lost as sandy weill was at the helm of citigroup when it was becoming the behemoths it is today he was instrumental and pioneering the one stop shopping bank model even violating remaining provisions of glass steagall at the time in the process here is inside jobs filmmaker and predator nation author charles ferguson talking to us about it take a listen. citi group wanted to acquire travellers it did acquire travelers before the glass steagall act was repealed and so it was at the time an illegal combination of a commercial bank and an investment bank is travelers which

weill got to be considered one of the top crony guys in that nineteenth ernie's horrid period of. dr seuss' anyone else's there is a. well you mention financial terrorism so let's talk about some financial terrorism and bring it back to the first half of the show which is that you know where is the crime and punishment and tony blair says we shouldn't be hanging bankers headline reads investment banker fifty eight arrested after smashing windows with a slingshot and marbles because he got a thrill from it a hot shot investment banker fifty eight has been arrested accused of wreaking havoc in los angeles michael. has allegedly been driving around shattering windows since the beginning of the year using a slingshot to fire marbles and not have buildings police said he must have got a thrill from it the banker max was from u.b.s. right and we wish him the report of that out of shame for the artist put chalk in for a chase and was arrested there's a u.b.s. banker marbles and slingshots breaking windows and he's like oh well he's just getting ready but of course u.b.s. my friends my ey

weill got to be considered one of the top crony guys in that nineteenth ernie's horrid period of. dr seuss or anyone else's there is a. well you mention financial terrorism so let's talk about some financial terrorism and bring it back to the first half of the show which is that you know where is the crime and punishment and tony blair says we shouldn't be hanging bankers headline reads investment banker fifty eight arrested after smashing windows with a slingshot and marbles because he got a thrill from it a hot shot investment banker fifty eight has been arrested accused of wreaking havoc in los angeles michael. has allegedly been driving around shattering windows since the beginning of the year using a slingshot to fire marbles and not have buildings police said he must have got a thrill from it the banker max was from u.b.s. right and we wish him the report of that out of shame for the artist put chalk in for a chase and was arrested there's a u.b.s. banker marbles and slingshots breaking windows and he's like oh well he's just doing routine but of course u.b.s. my friend has

weill got to be considered one of the top crony guys in that nineteenth ernie's horrid period of. dr seuss' anyone else's there is a. well you mention financial terrorism so let's talk about some financial terrorism and bring it back to the first half of the show which is that you know where is the crime and punishment and tony blair says we shouldn't be hanging bankers headline reads investment banker fifty eight arrested after smashing windows with a slingshot and marbles because he got a thrill from it a hot shot investment banker fifty eight has been arrested accused of wreaking havoc in los angeles michael. has allegedly been driving around shattering windows since the beginning of the year using a slingshot to fire marbles and not have buildings police said he must have got a thrill from it the banker max was from u.b.s. right and we wish him the report of that outshone for the artist put chalk in front of chase and was arrested here's a u.b.s. banker marbles and slingshots breaking windows and he's like oh i was just getting ready but of course u.b.s. my friends lex my eyes

weill got to be considered one of the top crony guys in that nineteenth ernie's horrid period of. dr seuss' anyone else's there is a. well you mentioned financial terrorism so let's talk about some financial terrorism and bring it back to the first half of the show which is that you know where is the crime and punishment and tony blair says we shouldn't be hanging bankers headline reads investment banker fifty eight arrested after smashing windows with a slingshot and marbles because he got a thrill from it a hot shot investment banker fifty eight has been arrested accused of wreaking havoc in los angeles michael. has allegedly been driving around shattering windows since the beginning of the year using a slingshot to fire marbles and not have buildings police said he must have got a thrill from it the banker max was from u.b.s. right and we wish him the report of that outshone for the artist put chalk in for a chase and was arrested there's a u.b.s. banker marbles and slingshots breaking windows and he's like oh well he's just getting ready but of course u.b.s. my friends my eyes

weill got to be considered one of the top crony guys in that nineteenth ernie's horrid period of. dr seuss' anyone else's there is a. well you mentioned financial terrorism so let's talk about some financial terrorism and bring it back to the first half of the show which is that you know where is the crime and punishment and tony blair says we shouldn't be hanging bankers headline reads investment banker fifty eight arrested after smashing windows with a slingshot and marbles because he got a thrill from it a hot shot investment banker fifty eight has been arrested accused of wreaking havoc in los angeles michael. has allegedly been driving around shattering windows since the beginning of the year using a slingshot to fire marbles and not have buildings police said he must have got a thrill from it the banker max was from u.b.s. right and we wish him the report of that outshone from the artist put chalk in front of chase and was arrested here's a u.b.s. banker marbles and slingshots breaking windows and he's like oh well he's just getting ready but of course u.b.s. my friends my e

we saw this with sandy weill yesterday. he shocked the world with his about-face on banks. >> i think what we should probably do is go and split up investment banking from banking. have banks be deposit takers, have banks make commercial loans and real estate loans. have banks do something that's not going to risk the taxpayer dollars. that's not going to be too big to fail. >> and this goes hand in hand with a push for more regulation in washington with lawmakers trying to finalize half of the rules length of time. the man with his name on that law, congressman barney frank, joins me right now. is sandy weill right? split up the banks? >> this is not a very useful part-time to talk about that you can flish a lot of what he says he's for with the volcker rule. it says that banks should not be engaged in a lot of trading and other nonlending, we were doing better, europe is slowing us down. the notion at this point that we would do something drastic to a major part of the economy is not a good idea. if he thought it was a go

i want to ask you, what does sandy weill think breaking up the big banks? >> he's not on the dream team. >> is he mad at jamie dimon for some reason? >> that goes way back. his daughter was there and jamie went and got jpmorgan and made it into a colossus and then sandy didn't set up his success well to chuck prince. sandy was the architect of this bank and now he's talking about breaking them all up. he was the one that put it altogether. hypocritical? right. >> yes, it is. >> maybe. >> mistakes were made. >> yes, they were there. >> mistakes were made. so fortune magazine's executive dream team, what are we looking at here? >> a little fun -- >> little bit. >> little bit here in the summertime. it does, again, speak to leadership and, you know, i want to talk about some of the top people. let's start at the very top with the ceo, our ceo pick, which is someone who's overlooked which is jeff bezos of amazon, overshadowed by steve jobs, you were talking about steve jobs and what a great innovator he was. amazon, revolutioned shopping, greatest on-line store

you're on record agreeing with sandy weill, chop up the big banks. but you also say, the next crisis is looming. so what the heck did we learn from 2008, neil? >> from a policy perspective, we've learned nothing. we have these giant backs, they helped cause and precipitate this devastating financial crisis in 2008. and our official government policy, led first by the republicans and then by the democrats, there's ultimately no difference, was to take those really big banks and make them bigger. and to rescue them and preserve the status quo and all of the bad incentives, all of the bad things that led up to 2008 are in place, which is why i'd like to say sandy weill has come to my point of view and he's joined me and others who have been calling for the breakup of large banks. because you can't look at a system and look at the incentives and not realize that we're headed towards the exact same cliff that we were in 2008. >> but if we're headed towards the exact same cliff, are we learning our lessons? because these big banks have not, you know, been

funny that you could start moving on when we had jim rickards last week we talked about sandy weill's comments about breaking up the too big to fail banks and a viewer responded and said i don't understand why separating commercial banking and investment banking would solve much i mean why is there a crucial difference between the same company giving out loans and securitizing them versus one company giving out loans and another one securitizing and selling them when the exact same incentives exist in both cases the incentive to get out risky loans to make a profit and the incentive to sell bad debt would exist in both cases as far as i can see you know it's an interesting point i really do think this is a key issue though the separation of investment banking and commercial banking because the issue is not that similar incentives exist in both places the issue is the lack of a fire wall between commercial and investment banking which means that average depositors and savers can't put their money in a bank without the risk of having a loss due to some risky trade or gaudy investment an

comments made on this show is still rocking the financial industry, sandy weill's change of heart on financial super markets like the ones he created. take a listen to this for a second. >> what we should probably do is go and split up investment banking from banking, have banks be deposit takers, have banks make commercial loans and real estate loans and have banks do something that's not going to risk the taxpayer dollars, that's not going to be too big to fail. the banking system is really very, very important. i think that the problem that was created was created by too much concentration in investments in the banking system, way too much leverage, very little transparentally with lots of off-balance sheath things that didn't really count and i think a lot of those things have to change. i think that there should be transparency and nothing off the balance sheet. if a bank or institution wants to do something they should have it on the balance sheet. they can call it special purpose vehicles or whatever they want to call it, but it should be shown. >> our next guest does not agre

>> that's a really good question and one that sandy weill touched on. is it sort of a higher risk/higher return entity and which banks do we think would bo more open to it? it's hard to say. it's an election season. people want to see how that turns out. if we have a romney for president it may be better for the environment. they may even try to repeal dodd/frank for that matter but that's another story. i don't think anyone's going to say, hey, we're open to this. you make an interesting point about morgan stanley. they definitely have challenges right now. i think that's one reason they're considering a possible, even minority investment in their commodities franchise. i wouldn't execet to see much change at jpmorgan, b of a. it's hard to say. >> thanks so much. brian shactman, what are you watching? >> i'm watching deere. a whoa slew of some construction transportation names. interestingly nut cat and cummins get market perform and the only underperform was navistar. so deere with an $89 target. back to you. >> up next, the top three trades to consid

weill's had for a while but the guy who built citi group and had on his wall little plaque that said a glass steagall. breaker or some words to that effect very very proud of the fact that he busted up glass steagall watch this clip of him yesterday. on television see n.b.c. . so i think what we should probably do is go and split up investment banking from banking. have banks be deposit takers have banks make commercial loans and real estate loans you have banks do something that's not going to risk the taxpayer dollars that's not going to be too big to fail. so and becky quickly he was talking to us like wait a minute that's more radical than glass steagall and he was like you know let's do this. is he just suggesting this because the banks are under attack and if they were to break them up like much like when a was broken up in the antitrust action stockholder equity actually went up as a consequence of that that this might be very profitable for the banks to be great i mean i don't know what his motives are but i do know it is a staggering admission and i wish we would have a few

weill's had for a while the guy who built citi group and had on his wall little plaque that said a glass steagall destroyer or breakers of words to that effect very very proud of the fact that he busted up glass steagall watch this clip of him yesterday. on television see him b.c. . so i think what we should probably do is go and split up investment banking from banking. have banks be i should take years to have banks make commercial loans and real estate loans you have banks do something that's not going to risk the taxpayer dollars that's not going to be too big to fail. so and and becky quickly he was talking to us like wait a minute that's more radical than glass steagall and he was like you know let's do this. is he just suggesting this because the banks are under attack and if they were to break them up like much like one thousand. in the antitrust action stockholder equity actually went up as a consequence of that that this might be very profitable for the banks to be taken to don't know what his motives are but i do know it is a staggering admission and i wish we would have a few

weill the former c.e.o. and chairman of citigroup has said the big banks should be broken up the irony cannot be missed this is a man who at the helm of citigroup helped turned it into a behemoth now he is obviously singing a different tune so we're going to talk about all of this and more as well as alternative investments to get out of this financial system that's so crazy we have jim rickards author of currency wars as my guest host today and rick rule natural resources guru as a guest from vancouver so you won't want to miss it right a lot going on there thanks lauren for that update that's all coming up next on the capital account but that is going to do it for the news for the very latest on the stories we covered today and a few that we didn't have time to get so you can check out our you tube channel you tube. dot com slash r t america or check out our website it's artsy dot com slash usa that's a find out what i'm doing when i am not reporting the news you can follow me on twitter at was wall will b

it's almost it would be like as if it would be use of sandy weill came out and said that he's against big banks and wants to break them up and bring black glass steagall of course that's impossible that would never happen well max of course. operates farmville in which people around the world grow virtual vegetables and raise virtual cows there's also a drought happening in the real farming world report drought intensifying across oklahoma a u.s. drought monitor report shows parts of northwestern oklahoma in exceptional drought the western one third of the state the panhandle and parts of central to southeastern oklahoma are in extreme drought while most of the remainder of the state isn't severe drought the only rain do max is no golly washer or strangler as they say down in those parts of course not but you know this drought that's happening in the physical world the analog world that's just drawing the economy it's really reminiscent of the one nine hundred thirty s. dust bowl when you had the depression which was caused by wall street in the twenty's and all the activities that pr

it's almost it would be like as if it would be use of sandy weill came out and said that he's against big banks and wants to break them up and bring black glass steagall of course that's impossible that would never happen well max of course. operates farmville in which people around the world grow virtual vegetables and raise virtual cows there's also a drought happening in the real farming world report drought intensify across oklahoma and u.s. drought monitor report shows parts of northwestern oklahoma in exceptional drought the western one third of the state the panhandle and parts of central to southeastern oklahoma are in extreme drought while most of the remainder of the state isn't severe drought the only rain do max is no golly washer or toad strangler as they say down in those parts. of course not but you know this drought that's happening in the physical world the analog world that's just drawing the economy it's really reminiscent of the one nine hundred thirty s. dust bowl when you had the depression which was caused by wall street in the twenty's and all the activities th

it's almost it would be like as if it would be use of sandy weill came out and said that he's against big banks and wants to break them up and bring but glass steagall of course that's impossible that would never happen well max of course. operates farmville in which people around the world grow virtual vegetables and raise virtual cows there's also a drought happening in the real farming world report drought intensifying across oklahoma and u.s. drought monitor report shows parts of northwestern oklahoma in exceptional drought the western one third of the state the panhandle and parts of central to southeastern oklahoma are in extreme drought while most of the remainder of the state isn't severe drought the only rain do max is no golly washer or strangler as they say down in those parts. of course not but you know this drought that's happening in the physical world the analog world that's destroying the economy it's really reminiscent of the one nine hundred thirty s. dust bowl when you had the depression which was caused by wall street in the twenty's and all the activities that pre

it's almost it would be like as if it would be use of sandy weill came out and said that he's against big banks and wants to break them up and bring what glass steagall of course that's impossible that would never happen well max of course. operates farmville in which people around the world grow virtual vegetables and raise virtual cows there's also a drought happening in the real farming world report drought intensifying across oklahoma and u.s. drought monitor report shows parts of northwestern oklahoma in exceptional drought the western one third of the state the panhandle and parts of the central two southeastern oklahoma are in extreme drought while most of the remainder of the state isn't severe drought the only rain do max is no golly washer or strangler as they say down those parts of course not but this drought that's happening in the physical world the analog world that's just drawing the economy it's really reminiscent of the one nine hundred thirty s. dust bowl when you had the depression which was caused by wall street in the twenty's and all the activities that predated

it's almost it would be like as if it would be use of sandy weill came out and said that he's against big banks and wants to break them up and bring black glass steagall of course that's impossible that would never happen well max of course. operates farmville in which people around the world grow virtual vegetables and raise virtual cows there's also a drought happening in the real farming world report drought intensifying across oklahoma and u.s. drought monitor report shows parts of northwestern oklahoma in exceptional drought the western one third of the state the panhandle and parts of central to southeastern oklahoma are in extreme drought while most of the remainder of the state isn't severe drought the only rain do max is no golly washer or strangler as they say down in those parts. of course not but you know this drought that's happening in the physical world the analog world that's just drawing the economy it's really reminiscent of the one nine hundred thirty s. dust bowl when you had the depression which was caused by wall street in the twenty's and all the activities that

i know what sandy weill told people. i was on institutional investor there. i know what the belief in the financial supermarket was. when he comes on trf and he talks about his charitable endeavors, which of course we all know are very good things, when he is able to cash out that type of stock in a period where the financial supermarket model, the breakdown of glass-steagall, something he said at that time was the whole point of the model of the future, and to say now, what do i want to say, what about all the employees, the people that work in the margin department, the people that work in the custody, the private bankers, and in fact, dick beavebeav beavoire, they lost 90% of their wealth because they bought into the financial supermarket model and they hear yesterday maybe this model doesn't work. most of those employees still own a tremendous amount of stock in their retirement plans and so you cannot, you cannot change history, which gets me to another point which i want to talk about. i see a fundamental change here recently and i don't know what is be

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sandy weill called for a break up of big banks this week. the idea has not resonated well with all bankers. >> why shouldn't we provide those products to customers. sandy says these products are risky. can you please tell of the risk? >> joining us now is dick bove who agrees with him. dick, i'll go to you first, you essentially say there's no good reason to break up the banks. why do you think it works in it's current form. >> let's look at the biggest banks in the united states. it makes more money in any but five companies in the united states. we'lls far go makes more than general electric, walmart, and coca-cola. if you look at city group, there is only 17 companies in the united states that make more than $10 billion a year. citi group makes more than pfizer and merck. you're talking about breaking up companies that are the most successful in the united states, and that basically employ a million people. if you take the top four in the country. let's look at the little banks. they day at the rate of one a day, and they've been doing so

sandy weill. >> why the change now? >> well, listen to what he said on cnbc. >> so i think what we should probably do is go and split up investment banking from banking and have banks do something that's not going to risk the taxpayer dollars, that's not going to be too big to fail. >> he says the world is different today than it was 10 years ago, and it deserves a different kind of a system i guess. when you talk about big banks, ceos flip flop, another person got a lot of attention this week. phil purcell, former ceo of morgan stanley. he said there's one benefit of break-ups that hasn't gotten much publicity. shareholders would get greater value for their investments. breaking these companies into separate businesses would double to triple the shareholder value of each institution. so you're hearing from people who have long been champions of big banks, financial market innovation, financial supermarket, who are now saying maybe shareholders would benefit even from breaking up banking. >> i have written about this. w

and the amnesia that's setting in vis-a-vis financial markets -- by the way, i was struck by sandy weill yesterday, former ceo of citigroup, saying, no, actually, all that stuff that he was partially responsible for, it didn't work. so, even some people in the banking sector, greenspan recognizes it. so, this deregulatory trickle-down agenda, i particularly thought it was jermaie germane for you to go through all the outcomes, the poverty. it's a doubling down. >> the thing that i think is important, because there's a false equivalency. you always hear we need new economic thinking, and one thing i think impressed me about particularly the clinton err air that's around president obama, in the '90s, the thing that was big is they wanted to balance the budget when a lot of progressives were saying you need to invest, the budget is not the biggest thing, and they were big on deregulation, and they executed basically a 180 flip. they're not saying of course you need to balance the budget eventually or at least cut the deficit eventually, but for now, you need to do more deficit finance stimu

. >>> you've probably heard the name sanford weill or sandy weill. he's to wall street bankers say what jerry seinfeld is to sitcoms. if you don't pay much attention, he's the one you have probably heard of. he used to run citibank. he got really, really, really rich doing it. today on cnbc, he said that the united states government should break up the big banks. you know, the big banks like citi which he ran. imagine jerry seinfeld saying there should be no more primetime sitcoms or tony bennett saying no more crooning? that's what sandy said today. that leads us into the ezra klein challenge where i try to explain complicated stuff especially in the economy that seems at first chance a little mystifying. tonight, what the heck they're talking about when they talk about breaking up the big banks. everyone says it. weill says it, everyone hears it, but it doesn't often get explained. what is breaking up the big banks? how would they do it, and why would we want to? may i have my two minutes please? okay, there it is. ready. set. you have heard of all

weill saying all that stuff that he was partially responsible for, it didn't work, so even some people in the banking sector, greenspan recognized it, so this deregulatory trickle down agenda, i thought it was germaine for you to go through the outcomes, the poverty, it's doubling down, ezra. >> the thing i think is important, there's a false equivalence, oh, we need new economic thinking, and one thing that i think has impressed me about, particularly, the clinton area of vets around barack obama, is that in the '90s, what they did, and you were part of these debates, they wanted to balance the budget when a lot of progressives were saying you need to invest, and they were big on deregulation and they have executed, basically, a 180 flip. they are not saying you don't need to balance the budget eventually or cut the deficit eventually, but for now, you need to do more deficit finance stimulus in the short term. at least implement dodd-frank, because we live in a different economic moment. am i misreading that? >> it's exactly right. this whole kind of notion that's embedded in our thi

>> we chatted today about 2008, sandy weill on the network early this morning, melissa is a long island girl. >> i am. >> melissa, i don't know if you saw it. lloyd harbor, joe gregory, has put his compound on the msharke for sale, $22 million.