Kansas City Fed's Hoenig Gives the Kill Too Big to Fail Speech ... Again
pic credit: Kleptocracy, who has the t-shirt
(JDA is a small.. just sayin)
Kansas City Fed President Thomas Hoenig has done this speech a million times by now but this time he made JDA get shivers down her spine. Well played, homie, well played.
My remarks are entitled “Financial Reform: Post Crisis?” and will address financial regulatory reform and too big to fail. Like most Americans, I am a strong defender of free market capitalism and I’m here today to make an argument that our country should take the difficult steps required to move its financial industry back toward that system.
I acknowledge that there is more than one view on this topic. There are those who believe we have made great strides with Dodd-Frank and if we implement it well, all will be fine. Some believe that that the industry is over-regulated, which may be true, but we should not confuse over-regulated with well-regulated. And some of us are certain that in spite of all that’s been done and debated, the soundness of the largest financial institutions and the systemic risks they continue to pose is no better. In my view, it is even worse than before the crisis. As well-intentioned as the Dodd-Frank Act may be, it will not improve outcomes. Today I will describe why I believe that is the case and, more importantly, what must be done to give the United States a financial system that is healthy and competitive, and that supports rather than endangers the economy.
The entire speech is recommended in its entirety, lest we skew his intention by chopping it up and tearing it up paragraph by paragraph.
Too Big to Fail has failed, starting with Washington and working our way out.