Iceland Could Be First Western Nation Since Financial Crisis To Break Up Its Banks

Bloomberg News reports that Iceland is “on course to become the first western nation since the global financial crisis hit five years ago to force banking conglomerates to split their business.” An Icelandic lawmaker is pushing a measure to separate risky investment banking from more traditional banking practices, saying “the best way to stop banks creating asset bubbles is to pass laws akin to the 1933 Glass-Steagall Act, which separated commercial and investment banking in the U.S. for more than six decades.” Last month, Sandy Weill — who all but invented the too-big-to-fail bank when he oversaw the creation of Citigroup — said that the U.S. should consider breaking up its biggest banks.