Dallas Fed President: stop 'coddling' and break up 'too big to fail'

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http://www.americablog.com/2009/11/dallas-fed-president-stop-coddling-and.html
Dallas Fed President: stop 'coddling' and break up 'too big to fail'


Big Banks Should be Broken Up, Not 'Coddled': Fed's Fisher
http://www.cnbc.com/id/34051559

Banks that are considered too large to fail should be dismantled rather than "coddled," Dallas Federal Reserve Bank President Richard Fisher said on Thursday.

(snip)
Fisher suggested the only way of ensuring that such financial giants do not pose recurrent problems is by making them smaller.

"This means finding ways not to live with 'em and getting on with developing the least disruptive way to have them divest those parts of the 'franchise,' such as proprietary trading, that place the deposit and lending function at risk and otherwise present conflicts of interest," Fisher said in prepared remarks to the Cato Institute, a libertarian think tank.

It was one of the strongest calls to date from a sitting Fed official for an actual breaking up of large financial institutions.