Goldman Sachs Group Inc. is best positioned if the Glass-Steagall Act returns, Chief Executive Lloyd Blankfein told CNBC.
U.S. President Donald Trump has been actively considering breaking up big banks, which could push efforts for revival of the Glass-Steagall Act, a Depression-era law that separated commercial lending from investment banking.
Bringing back Glass-Steagall would likely have a significant impact on banks like JPMorgan Chase & Co, Bank of America Corp and Citigroup that have large highly intertwined commercial lending and investment banking operations, say analysts.
It would impact Goldman Sachs and Morgan Stanley to a lesser degree although, they would likely have to revert to being standalone investment banks and shed their deposit funding.
During the CNBC interview on Tuesday, Blankfein also commented on the less volatile markets, calling it “worrisome.” “I don’t know what brings us out of the doldrums, but I do know this is not a normal