Fed’s Hoenig: Reform to hit smaller banks

first_img Read This Next’A Quiet Place Part II’ Sets Pandemic Record in Debut WeekendFamily ProofHiking Gadgets: Amazon Deals Perfect For Your Next AdventureFamily ProofIndian Spiced Vegetable Nuggets: Recipes Worth CookingFamily ProofAmazon roars for MGM’s lion, paying $8.45 billion for studio behind JamesFamily ProofYoga for Beginners: 3 Different Types of Yoga You Should TryFamily ProofBack on the Rails for Summer New York to New Orleans, Savannah and MiamiFamily ProofTortilla Mango Cups: Recipes Worth CookingFamily ProofWhat to Know About ‘Loki’ Ahead of Disney+ Premier on June 9Family ProofCheese Crostini: Delicious Recipes Worth CookingFamily Proof Fed’s Hoenig: Reform to hit smaller banks KCS-content whatsapp KANSAS City Federal Reserve Bank President Thomas Hoenig warned yesterday that landmark financial reforms may not end market perceptions that taxpayers will rescue the largest banks and cautioned against speculative investments in housing.Hoenig, testifying at a field hearing of the US House of Representatives Subcommittee on Oversight and Investigations, said larger banks perceived as “too big to fail” have a lower cost of capital, putting smaller banks at a competitive disadvantage and threatening their business model.The Dodd-Frank Wall Street Reform and Consumer Protection Act intended to end Wall Street bailouts by giving regulators a mechanism to seize and shut down failing large institutions in much the same manner as the Federal Deposit Insurance Corp can shut down smaller banks.Hoenig said it was not yet clear whether the reform act would put big and small banks on an equal footing.“That can only happen if markets are absolutely convinced that too big to fail has finally been ended and only time will tell. It’s an open question,” he told the hearing.Hoenig, the Fed’s lone policy dissenter in recent months, did not address the US central bank’s outlook on the economy nor monetary policy matters. He voted against the Fed’s decision earlier this month to reinvest funds from maturing mortgage-backed securities into Treasury debt to help push down mortgage interest rates further, citing a gradual improvement in the economy.He also told the House panel that housing was not suitable for speculative investments by consumers. Monday 23 August 2010 7:45 pm Sharecenter_img Tags: NULL Show Comments ▼ by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailNoteabley25 Funny Notes Written By StrangersNoteableyZen HeraldThe Truth About Why ’40s Actor John Wayne Didn’t Serve In WWII Has Come To LightZen HeraldBetterBe20 Stunning Female AthletesBetterBeautooverload.comDeclassified Vietnam War Photos The Public Wasn’t Meant To Seeautooverload.comAtlantic MirrorA Kilimanjaro Discovery Has Proved This About The BibleAtlantic MirrorTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastElite HeraldKate Middleton Dropped An Unexpected Baby BombshellElite HeraldTrading BlvdThis Picture of Prince Harry & Father at The Same Age Will Shock YouTrading Blvd whatsapplast_img

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