This is Part Two of my conversation with Thomas “Tom” Hoenig who is not only a former president of the Federal Reserve Bank of Kansas City but also a former Vice Chair of the Federal Deposit Insurance Corporation. He is passionate about problems he sees in the financial industry no doubt in part because he started out in the banking supervision area of the K.C. Fed and actually had to deal with troubled banks that had to be shut down in the early 1970’s.
In his work at the FDIC he oversaw FDIC operations and policy related to deposit insurance pricing, bank supervision, and financial stability and bank resolution. He served as Chair of the FDIC’s Bank Appeals and Audit Committees, and served as Director of NeighborWorks America, which was established by Congress in 1978 to address housing issues nationwide. As a Distinguished Senior Fellow at the Mercatus Center he continues to research and write about what needs to be done to put U.S. banks on a sounder regulatory footing, as he continues his work on monetary policy and the economy,
I share all of this so it’s clear that Tom is among the few who are uniquely qualified to connect the dots between the Fed’s monetary policy and its responsibility to also maintain financial stability, and why this has left some officials concerned about how to proceed along its current interest rate path. And
also to show that he is a leading expert on the banking system, bank regulation, and someone to be listened to when he talks about the the problems are and how they need to be fixed.
Hoenig: Rising Strains in Banking System Tie Fed's Hand in Inflation Fight