Hoenig Supports Limits on Banks

This story appeared in Bank Digest.

As a nation, we have violated the central tenants of any successful system. We have seen the formation of a powerful group of financial firms. We have inadvertently granted them implied guarantees and favors, and we have suffered the consequences. We must correct these violations,” stated President of the Federal Reserve Bank of Kansas City, Thomas Hoenig, in remarks before the Chamber of Commerce Center for Capital Markets Competitiveness Capital Markets Summit. According to Hoenig, an efficient banking system includes a “healthy mix of community, regional, and large banking companies.” He asserted that “a credible resolution process, simple rules for leverage and loan-to-value limits, and the Volcker rule reforms will allow all banks to compete on an equitable.