KC Fed's Thomas Hoenig says "too big to fail" banks have a lower cost of capital that places...

|By:, SA News Editor

KC Fed's Thomas Hoenig says "too big to fail" banks have a lower cost of capital that places smaller banks at a competitive disadvantage and threatens their business model. Community banks have been tested by the "abnormally slow recovery," he says, and earnings will be hampered by commercial real estate for several more quarters.