Roberta Karmel, a former commissioner with the Securities and Exchange Commission and a law professor at Brooklyn Law School, is recommending a complete overhaul of the U.S. banking system and a break up of the nation’s big banks.
In an interview with Bloomberg Law, Karmel said such a move would be similar to President Roosevelt’s break up of public utility companies in the 1930s.
Karmel also recommends a combining of the banking regulatory agencies and moving the SEC and the Commodity Futures Trading Commission into one unit.
Still, she doesn’t see the idea catching on even though Karmel suggested Dodd-Frank is too weak to do the job.
“I don’t think this idea has really been studied,” she told Bloomberg. “I can’t see Congress at this point embracing it, it would mean giving a lot of power to some agency to do the job of breaking up the big banks and restructuring the financial industry.”
— Kerri Panchuk