Calls by former Citigroup chief Sanford Weill, and others, to break up the nation's major banks do not solve the risk problems at the heart of the 2008 financial crisis, Robert Rubin, former Clinton Treasury Secretary, told CNBC's "Squawk Box" on Thursday.
A Citi board member from 1999-2009, Rubin said, "If you followed Sandy's path, and you broke up the banks in some fashion or other ... the risk isn't going to go away. The systemic risk, the 'Too Big to Fail' risk, will move from one place to another place."
Last summer, Weill — long-considered the father of the "supermarket banking" model — had surprising reversed course in a "Squawk Box" interview.
"I think what we should probably do is go and split up investment banking from banking. Have banks be deposit takers. Have banks make commercial loans and real estate loans. And have banks do something that's not going to risk the taxpayer dollars."