Interest Rate Roundup

Friday, March 06, 2009

Kansas City Fed President says "Too Big to Fail" approach is failing

There was a very interesting speech just delivered by Kansas City Fed President Thomas Hoenig. Essentially, he attacks the "Too Big To Fail" doctrine we're pursuing, where large institutions are kept on life support rather than seized/nationalized and resolved. This is the first time I can recall such a prominent member of the Fed saying anything like this. If you're interested in reading the speech, go here.

1 Comments:

  • Hopefully it will not be the last time we see such dissent. It sure took long enough to get just a bit of it. Bring it on.

    By Anonymous Chip, at March 6, 2009 at 11:07 PM  

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