Fed’s new Vice-Chairman Fischer does not support breaking up biggest banks

Marketwatch:

WASHINGTON (MarketWatch) — It is not clear that breaking up the largest banks would end the need for government bailouts of the financial sector, said Stanley Fischer, the new vice-chairman of the Federal Reserve, on Thursday. “In short, actively breaking up the largest banks would be a very complex task, with uncertain payoff,” Fischer said in his first speech since joining the central bank in May. Fischer will find some opposition to this view on the Fed as Richard Fisher, the president of the Dallas Fed, is a strong proponent of breaking up banks to end too-big-to-fail.

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