July 25 (Reuters) - Sandy Weill, the financial architect who turned Citigroup Inc into a megabank of deposits, loans and far-reaching investment banking and securities trading, said on television Wednesday that big banks should be split into commercial banks and investment banks.
“I think what we should probably do is go and split up investment banking from banking,” Weill said on CNBC. “Have banks make commercial loans and real estate loans. And have banks do something that is not going to risk the taxpayer dollars, that is not going to be too big to fail.”
Weill said he had come to this view over the past year as he watched public opinion turn against bankers.
“Our world hates bankers,” he said. “There is such a feeling among people, among regulators, among the political system all over the world against the banking system, and I don’t think that is going to change so soon.”
Weill’s comments come more than a decade after he convinced Washington to change laws and allow deposit-taking banks to expand far into investment banking and securities trading. (Reporting by David Henry in New York; Editing by Lisa Von Ahn)