Sheila Bair, senior advisor for Pew Charitable Trusts and former FDIC chair, says financial institutions like JP Morgan are too large to manage and need to be smaller and simpler.
Bair states, "This is still a very serious issue. I think it does underscore that even with very good management these institutions are just too big to manage, and especially when dealing with very complex derivatives instruments trying to hedge risk in large securities trading books, even the best of managers can stumble. And so it does I think require, suggests smaller, simpler institutions, ones that have more focused management on particular business lines."
Starting Point with Soledad O'Brien airs weekday mornings from 7-9am ET on CNN.