Federal Reserve Bank of Kansas City President Esther George said the Fed should allow its balance sheet to shrink before raising the main interest rate, differing from an approach backed by New York Fed President William C. Dudley.
Bankruptcy is the preferred path for resolving the largest U.S. banks when they collapse and firms should make fundamental changes to make that possible, Federal Deposit Insurance Corp. Vice Chairman Thomas Hoenig said today.
Kansas City Federal Reserve Bank President Thomas Hoenig , stepping up his criticism of Fed policy, said its plan to keep the key interest rate near zero may backfire by fanning doubts the recovery can be sustained.
Federal Reserve Bank of Kansas City President Thomas Hoenig said U.S. regulators should avert another crisis by breaking up large financial institutions that pose a threat “to our capitalistic system.”
Any plan to overhaul the U.S. financial regulatory system must preserve the Federal Reserve’s role in overseeing all banks, not just Wall Street firms, according to Thomas Hoenig, the president of the Federal Reserve Bank of Kansas City.