May 14th, 2012
10:00 AM ET

Shelia Bair on JP Morgan fiasco: Financial institutions are 'too big to manage'

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.


Topics: CNN • Starting Point
tmpl
soundoff (No Responses)

Post a comment


 

CNN welcomes a lively and courteous discussion as long as you follow the Rules of Conduct set forth in our Terms of Service. Comments are not pre-screened before they post. You agree that anything you post may be used, along with your name and profile picture, in accordance with our Privacy Policy and the license you have granted pursuant to our Terms of Service.