A revival of theGlass-Steagall Act, the Depression-era law that separated commercial and investment banking, is “absolutely necessary” to protect the U.S. financial system, Federal Deposit Insurance Corp board memberThomas Hoenigsaid in a Bloomberg Radio interview.
Using Dodd-Frank Act powers to break up banks one-by-one is the wrong approach to removing the threat that risky trading could spark a repeat of the 2008 credit crisis, Hoenig said today on “The Hays Advantage” with Kathleen Hays.
June 26 (Bloomberg) -- Thomas Hoenig, director of the Federal Deposit Insurance Corporation, talks about his proposal to reinstate the Glass-Steagall Act and regulation of the financial industry. Hoenig, speaking with Kathleen Hays and Vonnie Quinn on Bloomberg Radio, also discusses JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon’s seat on the board of the Federal Reserve Bank of New York. (Source: Bloomberg)
“It’s picking winners and losers based on what they present to you, and I think it is fraught with problems,” said Hoenig, who retired as president of theFederal Reserve Bank of Kansas Citybefore joining the FDIC in April.