Top Fed Official Wants To Break Up Megabanks, Stop The Fed

[cal04]

Top Fed Official Wants To Break Up Megabanks, Stop The Fed From Guaranteeing Wall Street's Profits
http://www.huffingtonpost.com/2010/04/02/top-fed-official-wants-to_n_521842.html

The U.S. should bust up its megabanks and impose strict laws curbing the size and complexity of financial institutions, a top Federal Reserve official told the Huffington Post.

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:

(snip)
Hoenig's criticisms echo those made by reformers pushing to remake a financial system that melted down in 2008 after years of excessive risk-taking and loose regulation finally took its toll, causing the worst economic collapse since the Great Depression and costing the nation more than 8 million jobs.

But Hoenig isn't just any reformer -- he's the longest-serving Fed policy maker; a voting member of the Fed's main policy-making body, the Federal Open Market Committee; and his credentials as a deficit- and inflation hawk are unparalleled.

[bemildred]

1. But what will Alan Greenspun think about this communist plot?

:sarcasm:

[prairierose]

2. I hope that some in Congress who understand what is ...

really going on will support this guy and his ideas. This is the first good idea I have heard out of the Fed.

[denverbill]

3. Too big to fail = Too big. Break them up. n/t