“Beginning to break them, to dismember them, is a fair thing to consider.”
-Federal Reserve Bank of Kansas City President Thomas Hoenig.
One of the few people associated with the Federal Reserve who a) actually seems to understand the problems and 2) does not seem to be captured by the banks is Kansas City Federal Reserve Bank President Thomas Hoenig.
At a meeting of the American Economics Association, Hoenig made statements calling for:
1. Maintaining a break up of TBTF as an option;
2. Defining and regulating banks with $50 billion or more in assets more aggressively than smaller banks;
3. Recognizing that when it comes to banks, “size matters;
4. Develop new rules to shut down failing firms in an orderly way;
Hoenig: Let Big U.S. Banks Fail (August 20th, 2009)
KC Fed Pres Hoenig on “Negotiated Conservatorship” (April 22nd, 2009)
Fed’s Hoenig Warns on Too-Big-to-Fail, Backs Glass-Steagall
Luca Di Leo
Real Time Economics, January 5, 2010