State Street CEO Says Breaking Up Big Banks Not Necessary

The transcript discusses the President's consideration of breaking up Wall Street banks, akin to a modern Glass-Steagall Act. The speaker argues against this, citing strong US banks and effective post-crisis regulations like Dodd-Frank. They suggest recalibrating existing regulations rather than imposing new ones. The conversation shifts to State Street's role in ETFs and concerns about passive investments affecting market stability.

What is the speaker's view on the necessity of a modern Glass-Steagall Act?

• It should be implemented immediately.

• It is essential for financial stability.

• It is only needed for international banks.

• It is unnecessary due to existing regulations.

Why does the idea of separating commercial and investment banking keep resurfacing?

• It is politically popular and attention-grabbing.

• It is a well-understood concept.

• It has proven benefits in other countries.

• It is required by international regulations.

What is the speaker's opinion on the strength of US banks compared to international banks?

• US banks are among the strongest globally.

• US banks are weaker than international banks.

• International banks are more regulated.

• US banks need more capital.

What milestone is State Street celebrating?

• Its 200th anniversary

• Its 50th anniversary

• Its 225th anniversary

• Its 100th anniversary

What concern is raised about the growth of passive investments?

• They could destabilize markets during downturns.

• They are not popular among investors.

• They are only beneficial in bull markets.

• They have no impact on market stability.