Classify Big Banks As GSEs, Says K.C. Fed Head

Thomas Hoenig, president of the Federal Reserve Bank of Kansas City, says the nation’s largest banks should be reclassified as government-sponsored enterprises as a result of the bailouts they received during the financial crisis, reports Reuters.

Thomas Hoenig, president of the Federal Reserve Bank of Kansas City, says the nation’s largest banks should be reclassified as government-sponsored enterprises as a result of the bailouts they received during the financial crisis. Speaking to a conference of states’ attorneys general, Hoenig says the activities of these banks should be limited, adding that he supports a policy that bars them from engaging in investment banking.

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