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Federal Reserve President Announces "Dismemberment" Of Large Financial Institutions Should Be Considered

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Tue, 01/05/2010 - 12:30 | 183034 Hondo
Hondo's picture

I know they won't listen to him but he on the money.......make him the Chairman.

Tue, 01/05/2010 - 16:02 | 183256 Anonymous
Anonymous's picture

that is exactly the reason he will never be considered

Tue, 01/05/2010 - 12:36 | 183041 john_connor
john_connor's picture

Hoenig has always been a voice of reason because he represents a smaller market that is disassociated from the NY banking cartel.

The NY Fed holds all the power; the other governers can only aqcuiesce

Tue, 01/05/2010 - 12:48 | 183057 Miyagi_san
Miyagi_san's picture

 GS is doing "Gods work" and the Fed has people that know exactly whats going on...and they want to dismember someone. It sounds like JPM just got a lot bigger, TBTF is so last year.  

Tue, 01/05/2010 - 15:41 | 183242 merehuman
merehuman's picture

Furthering Gods Work.  At workers.org is article describing bloodsuckers springing up along the s. border. Turns out the unemployed sell their plasma. Were getting 80.00 per week, now only 60.00 due to profit taking by suppliers of materials.  This may prove to be a growth industry.

I added this since its relevance is the STRIPPING, RAPING of our country and its people. This  sale of ones plasma is done when utterly poor and devoid of all other options.

I sold plasma years ago, hoboing in Corpus Cristy. 18.00 dollars at that time and i bought a squeegy with the money, found a bucket, got paper towels from gas station and commenced washing store fronts. Later that day i had a good meal and moved on. Knowing from experience what its like to be poor makes for effective money management later in life for some of us.

Tue, 01/05/2010 - 12:52 | 183063 Trifecta Man
Trifecta Man's picture

TBTF = United Crooks of America

Tue, 01/05/2010 - 13:00 | 183080 Anonymous
Anonymous's picture

it's either more kabuki or this guy doesn't place much value on his life.

Tue, 01/05/2010 - 13:00 | 183082 Racer
Racer's picture

They shouldn't need 4 Trillion in bail out money then should they!!


Tue, 01/05/2010 - 13:19 | 183107 lsbumblebee
lsbumblebee's picture

This is a joke. The banks are already insolvent. Did we forget "mark to fantasy"?

Tue, 01/05/2010 - 13:25 | 183112 TraderMark
TraderMark's picture

Would they consider dismembering their own TBTF institution? i.e the Fed ;)

Tue, 01/05/2010 - 13:32 | 183120 Anonymous
Anonymous's picture

Don't listen what I'm saying, watch me what I'm doing.

If what Hoenig says is implemented, it will foremost raise the funding costs of banks and thus undo most of Ben's rate cuts. Banks will be only able to borrow cheaply from the Fed, which is more or less an implicit guarantee by the gov't as major creditor. What is the difference between government guarantee and bailout? I am strugging to see it from any perspective.

Tue, 01/05/2010 - 13:48 | 183135 Scooby Dooby Doo
Scooby Dooby Doo's picture

Barney Rubble made a statement a few months ago when asked if the TBTF should be broken up.

"Show me how to do it".

Maybe these two should be put in the same room for a spirited debate. The ultimate dog & pony show regarding TBTF.

Tue, 01/05/2010 - 14:06 | 183156 Anonymous
Anonymous's picture

I think Hoenig is correct and that we do need to have process for dealing with failing institutions. So now that the Federal Reserve is essentially insolvent, what is the plan for disolving it?

Tue, 01/05/2010 - 14:15 | 183166 buzzsaw99
buzzsaw99's picture

fed ded heds love only big banks and money

Tue, 01/05/2010 - 15:25 | 183226 Anonymous
Anonymous's picture

Sounds good. But will they put it into practice? They should. Is he trying to nudge the other Fed presidents? Is the Fed floating an idea? It is floating the idea out of genuine interest, or is it floating it to deflect efforts such as audit the Fed? Or could he be trying to position himself in case Bernanke's Senate confirmation doesn't go so well? Would love to know. Probably never will.

Tue, 01/05/2010 - 18:01 | 183430 deadhead
deadhead's picture

"...or is it floating it to deflect efforts such as audit the Fed?"

This part is your answer.

This is all just talk just like the talk of an exit strategy.

Let's see, polls are showing that a huge majority of Americans hate the banks.  This is just the Fed's way of trying to appease the growing anger.  Hell, even Geithner talks a bit about breaking up the TBTFs as well as the strong dollar mantra.  I would suggest that you consider anything coming out of Geithner, Bernanke (or any other fed subservient governor) Summers simply a bunch of bullshit.

the Fed is not going to "exit" anything for a very, very long time.  and once it is obvious that their policies, once again, have been a failure, there will be any number of geopolitical events to blame it on.

Tue, 01/05/2010 - 16:15 | 183269 Lexington Duffet
Lexington Duffet's picture

The failure of the "Too big to fail" fantasy underscores another reason why the decision to weaken (not enforce I'd say) the anti-trust laws was a poorly reasoned policy.  

Or maybe I should say, the decision not to enforce the anti-trust laws--a policy started with Mr. Reagan and his crew -- worked in the way it should be expected to work:  it enriched the few who run, own and work for the (overlarge) business; everyone else took it in the shorts.  

Even Mr. Hayek in his Road to Serfdom opined that the anti-trust laws were good laws necessary to protect society from small groups overreaching.  The right forget that part of his book, and others like it, when quoting the work.

Latest from a Pub friend who does a lot of bank law work:  hates the Prez O; hates the bailout; hates everything demo; hates possible new taxes; he and his firm are making a mint doing legal work collecting $ for what should be a defunct bank running off TARP funds and fantasy bookkeeping.  Without the TARP and so forth cut their income by at least 50% to 70%.



Tue, 01/05/2010 - 16:21 | 183274 bugs_
bugs_'s picture

The Munder DisMEMBERment Fund! LOL.

Nice to know the position of the Kansas City Fed.

Carmen got more than she bargained for!

Tue, 01/05/2010 - 17:13 | 183337 Careless Whisper
Careless Whisper's picture

lloyd and Hank wacked the Lehman boys and Gotti wacked Castellano. It's more profitable without the competition.





Tue, 01/05/2010 - 17:14 | 183339 Cognitive Dissonance
Cognitive Dissonance's picture

"dismembering firms is a fair thing to consider."

When we begin carving up the TBTF banks, I want it done without anesthetic and in front of a live audience, Roman coliseum style. And I'll take a heaping helping of white meat and a wing while you're at it.

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