The big banks should not be able allowed to dip into FDIC -insured deposits to engage in risky trading activities, Sen. Elizabeth Warren told CNBC on Friday as she pushed for a new, modern-day bank breakup bill.
(Read More: Warren Pushing Bill to Break Up Big Banks )
"There is no single magic bullet to stop 'too big to fail,'" the Massachusetts Democrat said in a " Squawk Box " interview. "But the central premise behind a 21st century Glass-Steagall is to say, 'If you want to get out there and take risks, go and do it. But what you can't do is you can't get access to FDIC-insured deposits when you do.'" (Read More Below the Video.)
Warren, along with Sens. John McCain , R-Ariz., Maria Cantwell, D-Wash., and Angus King, I-Maine, have introduced legislation to separate traditional banks that have savings and checking accounts from riskier financial institutions that offer services such as investment banking, insurance, swaps dealing, and hedge fund and private equity activities.
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