Serving Main Street

Image by cliff1066™ via Flickr

Thomas Hoenig, President of the KC federal Reserve Bank, continues to argue for all of the banks in this country, not just the behemoths. In his opinion the Treasury should not have to petition anyone to put a dying bank in receivership; such a process is too likely to be subverted by the political clout of the big guys. And, in restricting the Fed to supervise only the behemoths, the proposed legislation ignores completely the 6,700 other banks in this country and makes the Fed the "central bank of Wall Street, not the central bank of the United States".