Time to Break Up the Big Banks?

The following video is from Friday's Motley Fool Money roundtable discussion with host Chris Hill and analysts Joe Magyer, James Early, and Ron Gross.

In this segment, Citigroup (NYSE: C  ) shares rose this week on the news that the bank is cutting 11,000 jobs. Shares of other major banks rose, as well, despite Citi being the one doing the cutting. James analyzes the move for Citi, and shares his belief that the major Wall Street banks should be broken up.

Citigroup's stock looks tantalizingly cheap. Yet, the bank's balance sheet is still in need of more repair, and there's a considerable amount of uncertainty after a shocking management shakeup. Should investors be treading carefully, or jumping on an opportunity to buy? To help figure out whether Citigroup is a buy today, I invite you to read our premium research report on the bank today. Click here now for instant access to our best expert's take on Citigroup.


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  • Report this Comment On December 07, 2012, at 6:07 PM, Rusty56 wrote:

    Yawn - more foolish nonsense!

  • Report this Comment On December 09, 2012, at 10:58 AM, andreapsoras wrote:

    why would you break up banks or talk about it when what's inflating their balance sheets are the OTC contracts, derivatives for trading? this except from the fees for trading, is not cash business, not operating cash flow producing business. so why hive apart banks' balance sheet of operations producing operating cash flow? this is the only healthy cash flow.

    let the OTC contracts and derivatives expire off; get rid of and repeal flawed multilateral agreements like G20 and 'free' trade, whereby the US has to deindustrialize. as soon as you're using the Constitution's Article 1 Section 8 compliant importation, and again according to the Constitution, have to hit imports with tariffs, you not only will be producing fiscal revenues, you will be keeping production in the US into which the banks can/will lend AND employing tax paying Americans at better wage/salary rates. And these people invest! hello!!!!! the loans too produced are/will produce operating cash flow. the only reason there is call to 'break up the banks' is because the foreign players do not have a policy against "Too Big to Fail" and their big players operate above the law there and sadly here by way of ISDA. So before you let the MEME, groupthink dominate your reasoning process and thus your public opinions, you also need to know the root causes of the issues. There's more to this issue than this, but this helps peel aside the onion.

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