Wall Street banks should be forced to give up their trading operations, says the FDIC's Thomas...

|By:, SA News Editor

Wall Street banks should be forced to give up their trading operations, says the FDIC's Thomas Hoenig, with broker-dealer activities cleaved off from banks. Hoenig says TBTF firms have "little capacity to manage [their companies] systematically over time" and regulators are ill-equipped to supervise them. (see also: prop trading, regulatory fail)