FDIC Vice Chair May Be Only Person Who Read Republican Platform Last Year

Thomas Hoenig crippled by debilitating belief that the president means anything he says.
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By Federalreserve (FRS_KC_cent_grp_121613_0576_02833) [Public domain], via Wikimedia Commons

By Federalreserve (FRS_KC_cent_grp_121613_0576_02833) [Public domain], via Wikimedia Commons

Remember when President Trump called for the return of the Glass-Steagall Act, the Depression-era law the kept commercial and investment banks separate until its long and slow decline and death from the early 1960s until its official repeal in 1999? Yea, he doesn’t either, or if he does, he’d probably tell you that he meant something broader when he had the GOP platform last year read, “We support reinstating the Glass-Steagall Act of 1933 which prohibits commercial banks from engaging in high-risk investment.”

Well, it seems that FDIC Vice Chairman Thomas Hoenig hasn’t seen the executive order declaring that words don’t mean things anymore, and so he’s taking the president at face value. We’re sure Paul Ryan, Jeb Hensarling, Gary Cohn and Carl Icahn will be getting right on this.

In a speech at the Institute of International Bankers annual conference, Mr. Hoenig detailed a proposal for large bank holding companies to separately capitalize and manage their traditional commercial banking activities and their nontraditional activities, such as investment banking….

“Through the booming 20th century and during the era of Glass-Steagall, investment banks underwrote companies that helped to build the modern economy and became part of the national fabric,” Mr. Hoenig said Monday. “These recommendations...will provide a more competitive playing field among and between commercial and investment banks.”

FDIC Official Details Idea for a New Glass-Steagall Law [WSJ]

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