Even the architect of banking consolidation urged re-separating investment banking

Evidence

Senator Elizabeth Warren of Massachusetts, a nemesis of Wall Street and its supporting lawmakers, was also highly skeptical of the effectiveness of this effort to prevent future bank failures requiring costly taxpayer bailouts: “[W]e Bandura_1e_ch05.indd 228 should not accept a regulatory system that is so besieged by lobbyists for big banks that it takes years to deliver rules, and the rules that are delivered are often watered down and ineffective” (Mattingly & Hopkins, 2013). Even the creator of Citigroup, Sanford Weill, acknowledged the need for a more comprehensive regulatory system along Glass-Steagall lines. “What we should probably do is go split up investment banking from banking” (Mattingly & Hopkins, 2013). — Albert Bandura, Moral Disengagement, 1549

Categorization

• XREF: Sanford Weill recanting on consolidation resonates with the book’s broader moral-disengagement theme — the creator distancing from the system he built.