President Donald Trump's comment about breaking up the nation's biggest banks makes sense, but is almost impossible, CNBC's Jim Cramer said Tuesday.
Speaking on "Squawk on the Street," Cramer said when Trump, who made his remarksthe same day he met with leaders of the Independent Community Bankers of America, is speaking in front of a particular audience, he aims to please.
"This audience does not like the big banks," Cramer said. "They feel like what happened during the Great Recession was that there was far too much concentration in the hands of Wells Fargo, in the hands of JPMorgan, in the hands of Bank of America."
Cramer added, "Those were really at the behest of the government. They were trying to make sure everybody was able to have a bank that worked and we didn't have a collapse. So, to undo it, while it certainly would make sense in terms of getting back to the percentages ... I think is almost impossible."
Major averages slipped Monday but then rebounded after Trump said in an interview with Bloomberg News he is considering "looking at" breaking up the big banks. The Dow closed down, while the S&P and Nasdaq posted gains.
Trump's comments could push efforts to revive the Depression-era Glass-Steagall law that separated commercial lending from investment banking, but would require an act of Congress.
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