Top Fed - Break Up Big Banks, Stop Bailouts - Huff Post Exclusive Interview

[autorank]

Top Fed Official Wants To Break Up Megabanks, Stop The Fed From Guaranteeing Wall Street's Profits > Shahien Nasiripour, Apr 2

In a 45-minute interview this week, Federal Reserve Bank of Kansas City President Thomas M. Hoenig, who's emerged as one of the few influential voices calling for a fundamental redesign of a broken U.S. financial system:

* Lambasted the tilted playing field that benefits Wall Street banks over Main Street banks;

* Called the idea that the U.S. needs megabanks to compete globally a "fantasy";

* Said Congress should mandate simple, easily understood and enforceable rules -- rather than guidelines -- so regulators can restrain financial firms and rein in the financial system;

* Prodded the Senate to get tougher on permanently ending Too Big To Fail by enacting laws that would take away much of the discretion currently held by policymakers (who bailed out financial firms when confronted with these decisions in late 2008);

* And criticized the Federal Reserve's ongoing policy to keep the main interest rate near zero because it "guarantee(s) a spread to Wall Street", enabling unearned profits and "encourag(ing) speculation."

[RKP5637]

1. Thanks for posting, hadn't seen nor heard... n/t

[autorank]

2. It's a mind blower isn't it.

Kansas City, MO is not far from Omaha, NE, Buffett's hometown. I think the Main Street crowd is moving in for the kill.

[Grand Taurean]

3. k/r

[truedelphi]

4. K & R. Hoening has been right on the money for the last two years.

I am not sure that is good news for him or not. It could well mean that soon, he will be assigned a job in a basement in the Federal Reserve, Kansas City.

We cannot have common sense people making up our banking policies. Horrors!

[autorank]

8. Common cents you say;)

Hoenig has been out there. This is a frontal attack. It's about time.

:hi:

[Toucano]

5. OMG, OMG, OMG!

I think I might be falling in love!

I'm such a sucker for sound fiscal policy. :)

[Enthusiast]

6. Damn! I agree with this guy!

He should be in charge.

[autorank]

7. He's striking a blow for the "other side" - us

The bias in bailouts and other actions has all been toward preserving the existing wealth and
control in the investment banking sector. That failed policy is so intolerable, we're seeing
Hoenig and others come out swinging against it. This will get real interesting real soon.

[Initech]

9. YES!!! Megabanks do more harm than good for this country.