[aldante]

Fed President had this to say:

Let Insolvent Financial Firms Fail: Fed’s Hoenig Insolvent financial firms must be allowed to fail regardless of their size, and sheltering such “too big to fail” institutions risks making the financial crisis worse, a top Federal Reserve official said Tuesday.

In blunt criticism of the government and his fellow central bankers, Federal Reserve Bank of Kansas City President Thomas Hoenig also said that the design of a $700 billion bank bailout last year had created uncertainty and slowed recovery.

“The United States currently faces economic turmoil related directly to a loss of confidence in our largest financial institutions because policymakers accepted the idea that some firms are just ‘too big to fail.’ I do not,” Hoenig told the Joint Economic Committee of the Congress in prepared remarks.

“Yes, these institutions are systemically important, but we all know that in a market system, insolvent firms must be allowed to fail regardless of their size, market position or the complexity of operations,” said Hoenig, who will be a voter on the Fed’s policy-setting committee next year.

The biggest 19 U.S. banks are being subjected to a battery of so-called stress tests to restore confidence in their soundness, with guidelines on the process due on Friday and the results on May 4.

Stocks fell sharply on Monday amid fear that some of them still face massive losses, as the severe U.S. recession forces loan default rates to continue rising.

Treasury Secretary Timothy Geithner has signaled that no firms will “fail” the stress tests, but Hoenig said this would be a mistake.

“Actions that strive to protect our largest institutions from failure risk prolonging the crisis and increasing its cost,” Hoenig said.

“Of particular concern to me is the fact that the financial support provided to firms considered “too big to fail” provides them a competitive advantage over other firms and subsidizes their growth and profit with taxpayer funds,” he said.

Nodding to anger among ordinary Americans over multi-billion dollar bailouts for rich bankers, Hoenig said some of these firms were simply too complicated, and too well-connected in Washington, for the good of the country.

“These ‘too big to fail’ institutions are not only too big, they are too complex and too politically influential to supervise on a sustained basis without a clear set of rules constraining their actions. When the recession ends, old habits will reemerge,” he said.

[aldante]

Fed President had this to say:

Let Insolvent Financial Firms Fail: Fed’s Hoenig Insolvent financial firms must be allowed to fail regardless of their size, and sheltering such “too big to fail” institutions risks making the financial crisis worse, a top Federal Reserve official said Tuesday.

In blunt criticism of the government and his fellow central bankers, Federal Reserve Bank of Kansas City President Thomas Hoenig also said that the design of a $700 billion bank bailout last year had created uncertainty and slowed recovery.

“The United States currently faces economic turmoil related directly to a loss of confidence in our largest financial institutions because policymakers accepted the idea that some firms are just ‘too big to fail.’ I do not,” Hoenig told the Joint Economic Committee of the Congress in prepared remarks.

“Yes, these institutions are systemically important, but we all know that in a market system, insolvent firms must be allowed to fail regardless of their size, market position or the complexity of operations,” said Hoenig, who will be a voter on the Fed’s policy-setting committee next year.

The biggest 19 U.S. banks are being subjected to a battery of so-called stress tests to restore confidence in their soundness, with guidelines on the process due on Friday and the results on May 4.

Stocks fell sharply on Monday amid fear that some of them still face massive losses, as the severe U.S. recession forces loan default rates to continue rising.

Treasury Secretary Timothy Geithner has signaled that no firms will “fail” the stress tests, but Hoenig said this would be a mistake.

“Actions that strive to protect our largest institutions from failure risk prolonging the crisis and increasing its cost,” Hoenig said.

“Of particular concern to me is the fact that the financial support provided to firms considered “too big to fail” provides them a competitive advantage over other firms and subsidizes their growth and profit with taxpayer funds,” he said.

Nodding to anger among ordinary Americans over multi-billion dollar bailouts for rich bankers, Hoenig said some of these firms were simply too complicated, and too well-connected in Washington, for the good of the country.

“These ‘too big to fail’ institutions are not only too big, they are too complex and too politically influential to supervise on a sustained basis without a clear set of rules constraining their actions. When the recession ends, old habits will reemerge,” he said.

[aldante]

Fed President had this to say:

Let Insolvent Financial Firms Fail: Fed’s Hoenig Insolvent financial firms must be allowed to fail regardless of their size, and sheltering such “too big to fail” institutions risks making the financial crisis worse, a top Federal Reserve official said Tuesday.

In blunt criticism of the government and his fellow central bankers, Federal Reserve Bank of Kansas City President Thomas Hoenig also said that the design of a $700 billion bank bailout last year had created uncertainty and slowed recovery.

“The United States currently faces economic turmoil related directly to a loss of confidence in our largest financial institutions because policymakers accepted the idea that some firms are just ‘too big to fail.’ I do not,” Hoenig told the Joint Economic Committee of the Congress in prepared remarks.

“Yes, these institutions are systemically important, but we all know that in a market system, insolvent firms must be allowed to fail regardless of their size, market position or the complexity of operations,” said Hoenig, who will be a voter on the Fed’s policy-setting committee next year.

The biggest 19 U.S. banks are being subjected to a battery of so-called stress tests to restore confidence in their soundness, with guidelines on the process due on Friday and the results on May 4.

Stocks fell sharply on Monday amid fear that some of them still face massive losses, as the severe U.S. recession forces loan default rates to continue rising.

Treasury Secretary Timothy Geithner has signaled that no firms will “fail” the stress tests, but Hoenig said this would be a mistake.

“Actions that strive to protect our largest institutions from failure risk prolonging the crisis and increasing its cost,” Hoenig said.

“Of particular concern to me is the fact that the financial support provided to firms considered “too big to fail” provides them a competitive advantage over other firms and subsidizes their growth and profit with taxpayer funds,” he said.

Nodding to anger among ordinary Americans over multi-billion dollar bailouts for rich bankers, Hoenig said some of these firms were simply too complicated, and too well-connected in Washington, for the good of the country.

“These ‘too big to fail’ institutions are not only too big, they are too complex and too politically influential to supervise on a sustained basis without a clear set of rules constraining their actions. When the recession ends, old habits will reemerge,” he said.

[aldante]

Sell them at a limit price. If they are good bonds with long maturities they should be selling at a premium. If they are short or intermediate with bad credit ratings they very well could be going for a discount. Bond traders will take less commission then your realtor if you kinda know what you are talking about.

[aldante]

Sell them at a limit price. If they are good bonds with long maturities they should be selling at a premium. If they are short or intermediate with bad credit ratings they very well could be going for a discount. Bond traders will take less commission then your realtor if you kinda know what you are talking about.

[aldante]

Sell them at a limit price. If they are good bonds with long maturities they should be selling at a premium. If they are short or intermediate with bad credit ratings they very well could be going for a discount. Bond traders will take less commission then your realtor if you kinda know what you are talking about.

[aldante]

Sell them at a limit price. If they are good bonds with long maturities they should be selling at a premium. If they are short or intermediate with bad credit ratings they very well could be going for a discount. Bond traders will take less commission then your realtor if you kinda know what you are talking about.

[aldante]

Sell them at a limit price. If they are good bonds with long maturities they should be selling at a premium. If they are short or intermediate with bad credit ratings they very well could be going for a discount. Bond traders will take less commission then your realtor if you kinda know what you are talking about.

[aldante]

Stick with the .357 or go with a .40. Finding ammo for .38, 9mm and espcially .45 is very hard.

[aldante]

Stick with the .357 or go with a .40. Finding ammo for .38, 9mm and espcially .45 is very hard.

[aldante]

Stick with the .357 or go with a .40. Finding ammo for .38, 9mm and espcially .45 is very hard.

[aldante]

Stick with the .357 or go with a .40. Finding ammo for .38, 9mm and espcially .45 is very hard.

[aldante]

Stick with the .357 or go with a .40. Finding ammo for .38, 9mm and espcially .45 is very hard.

[aldante]

Patient:

Patient……I think that voice of 2 thousand bankers close and cozy to the treasury drowns out the drone of 45 million homeowners trying to make ends meet. Especially when you tell them things are gonna work out. That is the crux of if for me.Btw try and call and talk to Feinstein or Boxer….I have never had one response.

[aldante]

Patient:

Patient……I think that voice of 2 thousand bankers close and cozy to the treasury drowns out the drone of 45 million homeowners trying to make ends meet. Especially when you tell them things are gonna work out. That is the crux of if for me.Btw try and call and talk to Feinstein or Boxer….I have never had one response.

[Author]

Posts