“Fed’s Hoenig Says Big Banks Still Benefit From Safety Net”
“The largest U.S. banks have an implied government safety net that gives them a lower cost of capital compared to community banks even after a congressional overhaul of banking regulation, Kansas City Federal Reserve President Thomas Hoenig said.
“Despite the provisions of the Dodd-Frank Act to end too- big-to-fail, community banks will continue to face higher costs of capital and deposits until investors are convinced it has ended,” Hoenig said today in a speech prepared to be delivered to a congressional hearing in Overland Park, Kansas.” Read more.
Steve Matthews
Bloomberg Businessweek, August 23, 2010.
Image by Carlos Portos / FreeDigitalPhotos.net.
