Tags: Gross | Weill | banks | Citigroup

Pimco’s Gross Blasts Weill Over 'Break up the Big Banks'

By    |   Thursday, 26 Jul 2012 07:16 AM

Bill Gross, Pimco’s legendary bond fund manager, isn’t too impressed with Sanford “Sandy” Weill’s comments that money center banks should be broken up.

It was Weill who as CEO of Citigroup put together the pieces that made it the country’s largest bank. And he pressed hard for the deregulation that allowed that to happen.

Weill told CNBC Wednesday, “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 too big to fail.”

Gross offered a reaction on Twitter: “Citi’s Weill now prefers to break up big banks,” the Pimco co-chief investment officer wrote. “Well done Sandy – ‘C’ trades at 10 cents on your 1998 merger dollar.”

“C” is Citigroup’s stock symbol. Gross was referring to the plunge of Citi’s shares since Citicorp’s merger with Travelers Group created Citigroup.

Ace bank analyst Mike Mayo of Credit Agricole was equally scathing in his critique of Weill’s remarks. "The person who created the animal now wants to kill the animal — what a shock,” he told Bloomberg.

Mayo also took issue with Weill’s statement that the banking world has changed.

“The world has not changed,” Mayo said. “The same ill-conceived, misplaced incentives that were in place a decade ago, when Sandy Weill was CEO of Citigroup, are still in place today."







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2012-16-26
Thursday, 26 Jul 2012 07:16 AM
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