This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Gingrich Would Break Up Big Banks

Stocks in this article: BAC C WFC JPM GS MS

NEW YORK ( TheStreet) -- Add Newt Gingrich to the list of Republican presidential candidates who say they support the idea of breaking up the largest U.S. banks.

Gingrich has climbed in the polls following Saturday night's Republican primary debate, and, like Rick Perry and Jon Huntsman, Gingrich has said he supports "very decisive reforms," with respect to the banking industry.

Newt Gingrich

"I think, in retrospect, repealing the Glass-Steagall Act was probably a mistake," Gingrich told Jake Tapper of ABC News in a recent interview, referring to Depression-era legislation that prohibited any combination of commercial banking, investment banking and insurance at the same company. The law was effectively repealed in 1999.

"We should probably re-establish dividing up the big banks into a banking function and an investment function and separating them out again," he said.

Huntsman and Perry were critical of the big banks during Wednesday night's debate, with the most detailed comments coming from Huntsman, the former Utah governor and ambassador to China.

Huntsman referred to "six institutions that are equal to 60, 65 percent of our GDP, $9.4 trillion," arguing "they have an implied guarantee by the taxpayers that they'll be protected. That's not fair, that's not right for the taxpayers," Huntsman said.

Huntsman was referring, of course, to JPMorgan Chase (JPM), Bank of America (BAC), Citigroup (BAC), Wells Fargo (WFC), Goldman Sachs (GS) and Morgan Stanley (MS) and his numbers were right on, according to this data from the Federal Reserve.

Asked what he wanted to do about this issue, Huntsman said, "we need to right size them."

Texas Governor Rick Perry voiced a similar sentiment during the debate, saying, "if they're too big to fail, they're too big."

-- Written by Dan Freed in New York Follow me on twitter.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs