“Today I am convinced that the existence of too big to fail financial institutions poses the greatest threat to the U.S. economy. The incentives for risk-taking have not changed post-crisis, and the regulatory factors that helped create the crisis remain in place. We must make the largest institutions more manageable, more competitive, and more accountable. We must break up the largest banks, and could do so by significantly narrowing the scope of institutions that are now more powerful and more of a threat to our capitalistic system than prior to the crisis.”
Kansas City Federal Reserve Bank President Thomas Hoenig, in a speech given Feb. 23
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