Giant banks like Bank of America (NYSE:BAC), Citigroup (NYSE:C), JPMorgan (NYSE:JPM) and Wells Fargo (NYSE:WFC) should be reclassified as government-sponsored entities, said Kansas City Fed President Thomas Hoenig, who also advocates they then have their activities restricted.
Hoenig has been a vocal opponent of the government bailing out the banks, and said "That's what they are," Hoenig said at the National Association of Attorneys General 2011 conference, in reference to being essentially government entities.
He said these banks and others like them should be restricted solely to commercial banking activities, advocating a policy that was in place for decades which barred banks from engaging in investment banking activities.
Hoenig rightly has espoused the banks should have been allowed to fail.
Wednesday, April 13, 2011
Bank of America (BAC) (C) (JPM) (WFC) Should be Reclassified as Government-Backed Entities says Hoenig
Labels:
Bank of America,
Citigroup,
JP Morgan,
Wells Fargo
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