KC Fed's Hoenig slams current govt. handling of bank crisis

Market Watch ^ | March 06, 2009 | Greg Robb

[Oldeconomybuyer]

WASHINGTON (MarketWatch) -- The current government approach to insolvent banks is "ad hoc" and isn't addressing the underlying problems, said Thomas Hoenig, the president of the Kansas City Federal Reserve Bank on Friday.

"We...are drifting into a situation where institutions are being nationalized piecemeal with no resolution of the crisis," Hoenig said in a speech in Omaha Nebraska.

The government should move to declare banks insolvent and use power to take over the failing institution and continue operations under new management, Hoenig said. This would be "temporary" and has precedent in history, he said. Worries about "systemic" intertwining of banks should not be an excuse for inaction, he said.

[TenthAmendmentChampion]

"We...are drifting into a situation where institutions are being nationalized piecemeal with no resolution of the crisis,"

That is by design.

0bama=Hugo Chavez

[Non-Sequitur]

Obama won’t listen to him because he isn’t the New York Fed chair. Apparently only the East Coast Fed heads know anything.

[Sig Sauer P220]

Off to the re-education camp with him.

[Anti-Bubba182]

I see more and more people are connecting the dots.

[colorado tanker]

The government should move to declare banks insolvent and use power to take over the failing institution and continue operations under new management

Exactly! It's not like we don't know how to do this, we do. Geithner and Bernanke just won't do it.

Instead we have a bunch of zombie banks full of bad loans on a slow walk to nationalization. Until these bozos start cleaning up the bad loans and bad banks the uncertainty will continue to kill the markets and bank stocks in particular.

[EVO X]

I get the impression Geithner is more concerned with climate change than paying taxes or resolving the banking crisis...

[colorado tanker]

The name of the game is cap and trade, baby, cap and trade. Raise billions and billions in tax revenue without calling it a tax! Way more fun than dealing with bad bank balance sheets!

[EVO X]

The name of the game is cap and trade, baby, cap and trade. Raise billions and billions in tax revenue without calling it a tax! Way more fun than dealing with bad bank balance sheets!

This guy is a real doozy. Now we see why O stuck with him through the tax problem..

[Cedar]

I wonder if Obama’s policies are soon to be determined treasonous. Maybe impeachment is just down the road.

More and more people speaking out against him and his dangerous policies.