06/27/2011 - The outgoing chief of the Federal Reserve Bank of Kansas City said Monday that the new Wall Street reform law doesn't do as much to keep big banks from threatening the financial system as a New Deal law repealed a decade ago.
Thomas Hoenig, speaking at a forum in Washington, said he wants a return to the days when commercial banks that took deposits were barred from making investment trades. The so-called Glass-Steagall law was repealed in 1999, after more than 60 years of walling off commercial banks from investment banks.
Hoenig said new reforms fail "to employ one remedy used in the past to assure a more stable financial system -- simplification of our financial structure through Glass-Steagall-type boundaries," at the forum sponsored by the Pew Financial Reform Project and New York University Stern School of Business.
Read the full article, Fed Official: Bring Back Tough Wall Street Rules, on CNNMoney's Web site.
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