Neel Kashkari news: New Fed president calls for big banks break-up

The big banks have found a new nemesis as new Fed president Neel Kashkari declares that big banks are still too big and need to break up. He expressed this opinion on Tuesday during his first major speech as the new president of the Minneapolis Federal Reserve. 

In a report on the New York Post, Kashkari said he believes that " the biggest banks are still too big to fail and continue to pose a significant, ongoing risk to our economy."

He further added during an interview with BloomberGo that by breaking the Morgan Chases, the Citigroups, and other big banks, the system becomes more secure and allows small lenders to relax a little. 

His speech came as a surprise considering that he also used to work at Goldman Sachs. Political observers, however, said that his statement is not out of character considering Kashkari was once a contender in the gubernatorial race in California in 2014. 

In a statement reported on Reuters, the new Fed president said that his radical call to break the big banks has nothing to do with politics. He said, "I do think there are people on both sides of the aisle who care about this issue and think we should take stronger action. It wasn't a political statement. It was a statement about economic risks."

Kashkari was the man who raised $700 billion to rescue the banks from bankruptcy back in 2008. He urged Congress to go beyond the Dodd-Frank reform if they don't want another financial meltdown to happen in the near future.

If the big banks were disappointed about Kashkari's declaration, Democrat presidential candidate Bernie Sanders praised him for his stance since they have similar views regarding this matter. It can be noted that the call to break big banks has become Sanders' centerpiece in his campaigns.