ABA President and CEO Frank Keating during a live interview on Fox Business yesterday offered perspective on the LIBOR issue and on calls to break up large banks.
Noting that only five of the top 50 banks in the world are U.S.-based, Keating said it would be a mistake to dismantle those banks and “turn over American big business funding to the Chinese banks.“
He added that a break-up would cause business to flow to large nonbanks that are “outside the tent” of bank regulations. “I think it’s important to have as few nonbanks as can be and a regulatory system that applies to everybody fairly and transparently,” Keating said.
Watch the interview.