Fed's Hoenig suggests separation of bank activities

05/24/2011 | Bloomberg

Thomas Hoenig, president of the Federal Reserve Bank of Kansas City, said that to prevent another global financial crisis, banks should be restricted to making loans and taking deposits. "Banking organizations that have access to the safety net should be restricted to the core activities of making loans and taking deposits and to other activities that do not significantly impede the market, bank management and bank supervisors in assessing, monitoring and controlling bank risk-taking," Hoenig said.

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