Jeff Cox
CNBC
November 2, 2011
Big banks that haven’t been performing should be broken up before they become a threat to the entire financial system, analyst and author Mike Mayo told CNBC.
Referring specifically to Bank of America and Citigroup, the managing director at Credit Agricole said the institutions are classic examples of banks where shareholders should be able to step in and remove ineffective executives.
Bad corporate governance — and not fundamental weaknesses of capitalism — is at the heart of why so many people distrust banks, said Mayo, who called for accountability rather than more regulation. Mayo is author of the upcoming Exile on Wall Street: One Analyst’s Fight to Save the Big Banks From Themselves.
“Let’s go bank by bank, company by company, CEO by CEO, chairman by chairman, let’s just go down the list…and start cleaning house,” he said.
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