FDIC Vice Chairman Thomas Hoenig
Repeats Call for Glass-Steagall in Interview
with U.K.'s Central Banking Journal
May 10, 2013 (EIRNS)In a wide-ranging interview published in today's issue of the United Kingdom's Central Banking Journal, Thomas Hoenig, vice-chairman of the Federal Deposit Insurance Corp. and former President of the Federal Reserve Bank of Kansas City, reiterated his position in favor of Glass-Steagall, stating that full separation of commercial and investment banking "should be done by law." Hoenig clarified that
"legislation should go further than the Volcker Rule and spin out the trading activities it prohibits into a separate company."
Asked "is anyone pushing this through in Washington?" Hoenig replied:
"there's a lot more discussion going on in both the Senate and the House of Representatives."
And questioned as to the central causes of the global financial crisis, Hoenig stated:
"When we eliminated the separation of investment banking from commercial banking, we expanded the safety net to broker-dealer activities, trading activities and so forth."