Fed's Hoenig wants major banks reclassified as GSEs

04/12/2011 | Reuters

Thomas Hoenig, president of the Federal Reserve Bank of Kansas City, said Bank of America, Citigroup and other major banks should be designated government-sponsored entities and have their activities restricted. He advocated prohibiting banks from investment banking. "You're a public utility, for crying out loud," he said. BofA CEO Brian Moynihan rejected Hoenig's proposal that banks split retail and investment banking. "I think customers want it together," Moynihan said.

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