Kill off “too big to fail”

Kansas City Fed President Thomas Hoenig understands the root cause of our financial crisis. Read the following Reuters article:

http://www.reuters.com/article/topNews/idUSTRE5AF17U20091116?feedType=RSS&feedName=topNews&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+reuters%2FtopNews+%28News+%2F+US+%2F+Top+News%29&utm_content=Google+Feedfetcher

The following quotese from Hoenig cuts directly to the heart of the problem:

• "As we look at reform and the way forward I think the most important think we need to do is to make first of all an accurate assessment of fundamental weaknesses in our financial system and then begin to create better foundations," he said.
  
• "Our institutions must be allowed to fail no matter what their size or political influence," he said.
  
• "Our reluctance to deal with 'too big too fail' provides these largest institutions with important advantages over any competitors who are not seen as important," Hoenig said.