SIFIs inconsistent with capitalism: Kansas Fed chief
Systemically important financial institutions are “fundamentally inconsistent with capitalism, inherently destabilising to global markets, and detrimental to global growth,” Thomas Hoenig, president of the Federal Reserve Bank of Kansas City, told a New York audience on Monday.
He argued that FDIC-insured deposits should not be
supporting securities firms, saying that the repeal of the Glass-Steagall legislation
gave high-risk firms almost unlimited access to funds generated through their
new access to the safety net.
Hoenig also labelled the argument that tougher capital
standards would make the US less competitive as nonsense.
Please take a trial or subscribe to access this content.
Contact our subscriptions team to discuss your access: email@example.com
To discuss GlobalCapital access for your entire department or company please contact our subscriptions sales team at: firstname.lastname@example.org or find out more online here.