While calls to break up the big banks have grown, proponents should put their weight behind already proposed rules to make the banking system safer, former FDIC Chair Sheila Bair contended Monday.
Neel Kashkari became president of the Federal Reserve Bank of Minneapolis this year, quickly using his platform to call for banking giants to break up. Sen. Bernie Sanders of Vermont has also made splitting the companies apart a cornerstone of his Democratic presidential campaign.
In the wake of the global financial crisis, the banks' "too big to fail" status is a problem, Bair said. Some proposals already on the table could stabilize the financial system, she argued.
"Ending 'too big to fail' is a good sound bite, but there are some actions we can take," she said on CNBC's "Closing Bell."