thinks that U.S. banks still have a long way to go when it comes to separating their retail and investment banking operations, Reuters reports
"Wall Street sort of lost its way, in that investment banking became a function not of allocating capital properly, but levering capital and levering the returns on capital as opposed to transferring capital to productive industries," said Pimco's [see profile]
chief, in front of an audience of fundsters at the Schwab Impact conference yesterday.
He added that investors need a banking system that is attractively and conservatively capitalized in order to regain confidence in the system.
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