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Showing posts with the label Thomas Hoenig

June 18, 1998 opposition to the Citibank/Traveler's merger

On July 25, 2012, Sandford I Weill, former Charman of Citigroup, said it’s time to break up the largest banks to avoid more bailouts. Mr. Weill, you'll recall, spearheaded the Citibank/Travelers, sparking the creation of super large financial institutions and creating the "too big to fail" dilemma. Mr. Weill accomplished this by getting policymakers to first ignore and then repeal the Glass-Steagall Act, a Depression era law designed to separate commercial from investment banks.

In an interview on CNBC, Mr. Weill stated that “ 'What we should probably do is go and split up investment banking from banking'..Have banks do something that’s not going to risk the taxpayer dollars, that’s not going to be too big to fail.' ” No kidding. Thank you, Mr. Weill. I suppose 5,151 days late is better than never at all.

An article about this matter on Bloomberg.com quoted Thomas Hoenig, a Federal Deposit Insurance Corp. board member and former head of the Kansas City Feder…