At Brookings, Kashkari Shocks With Call To Break Up Banks, But Is It That Radical?

Free market Republican and former Goldman Sachs executive Neel Kashkari stunned the financial world in his first speech as Minneapolis Fed governor by calling for the breakup of the systemically significant banks. Kashkari, who worked under former Treasury Secretary Hank Paulson on the last big bank bailout, used a nuclear reactor analogy when making the case and pointing to the next financial crisis that he hopes to prevent. But with behind the scenes concerns regarding seldom discussed derivatives exposures, blocked investigations and calls on both the right and left to end the crony capitalism, is Kashkari’s call radical or just…