This story appeared in Bank Digest.
Federal Deposit Insurance Corporation Vice Chairman Thomas M. Hoenig spoke at the Institute of International Bankers' Annual Washington Conference on March 13, 2017. The subject of his prepared remarks was "A Market-Based Proposal for Regulatory Relief and Accountability." According to Hoenig, "Rather than try to prevent bank failures, our goal should be to prevent the consequences of failures from requiring public bailouts and instead allow private owner equity to absorb the shocks."
In his prepared remarks, Hoenig also said that while the Dodd-Frank Act was well-intended, "its many and complicated regulations are burdensome for all banks, but especially smaller banks. The legislation also has served to enshrine too-big-to-fail for the largest, most complex universal banks, providing them with a powerful competitive advantage." Hoenig said his proposal was "an alternative approach to better address the challenge of too-big-to-fail, regulatory burden, and competitive equity."