Kansas City Fed president Thomas Hoenig just crushed the arguments against breaking up the biggest banks.
Anyone who regards themselves as a friend of free markets should regard the speech by Hoenig about so-called “Sifi” institutions, short for Systematically Important Financial Institution, as required reading.
“So long as the concept of a Sifi exists, and there are institutions so powerful and considered so important that they require special support and different rules, the future of capitalism is at risk and our market economy is in peril,” Hoenig said.
Full story: Kansas City Fed Chief: ‘Too Big to Fail’ Banks Are Destroying Capitalism – CNBC