KC Fed President Thomas Hoenig says banks’ business should be confined to loans and deposits to...

|By:, SA News Editor

KC Fed President Thomas Hoenig says banks’ business should be confined to loans and deposits to avert a 2008-style crisis. “The consequence of expanding the safety net to an ever-increasing range of activities is to invite a repeat of our most recent crisis... With separation of activities, risks will remain [but] this risk will be priced more correctly and failure can be resolved more equitably."