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 perspective on the potential impact of passive investments on the markets during a downturn?

How does the speaker view the balance between active and passive investments in the market?