Former Wells Fargo CEO says breaking up big banks would be a mistake

President Donald Trump said he is considering breaking up big banks, but former Wells Fargo chairman and CEO Richard Kovacevich thinks “it would be a mistake.”

Kovacevich said during CNBC’s “Closing Bell” on Monday that history and, more recently, the latest financial crisis, show that adding regulations on banks and limiting their lending ability has not helped the U.S. economy and the average American.

“The key to safe and sound banking is diversity,” Kovacevich added. “You can’t depend on any one sector, and when you become concentrated you have a very high possibility of failing sometime in the future.”

He added that “it’s the worst thing [Trump] can do,” and he hopes the president will reconsider.

Read on.

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