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Fed's Hoenig backs Senator Blanche Lincoln's proposal to bar commercial banks from swaps...

Fed's Hoenig backs Senator Blanche Lincoln's proposal to bar commercial banks from swaps trading. In a letter to Lincoln, Hoenig said tradings in swaps and derivatives creates risks that "are generally inconsistent with the funding subsidy afforded institutions backed by a public safety net,” and that "such activities should be placed in a separate entity that does not have access to government backstops."
Comments (2)
  • MarketGuy
    , contributor
    Comments (3983) | Send Message
     
    How did Hoenig slip into the Fed ranks anyway? The guy has a rational functioning brain not bought and owned by big banking. Bravo.
    11 Jun 2010, 08:25 AM Reply Like
  • OptionManiac
    , contributor
    Comments (3304) | Send Message
     
    Well, I agree with you this time.
    11 Jun 2010, 08:26 AM Reply Like
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