Rules won't end "too big to fail" perception, Fed's Hoenig warns

08/23/2010 | New York Times (tiered subscription model), The

Federal Reserve Bank of Kansas City President Thomas Hoenig told members of the House Subcommittee on Oversight and Investigations that regulatory reform likely will not quell market perception that some financial institutions remain "too big to fail." He also said smaller lenders are at a competitive disadvantage because larger banks have a lower cost of capital.

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