Fed's Hoenig: no firm is too big to fail
Thomas Hoenig, the president of the Kansas City Federal Reserve, has said that no firm is too big to fail.
Hoenig said that nonviable institutions must be allowed to fail and could be put into a negotiated conservatorship, as was done in 1984 with Continental Illinois, a bank. He also said that in the rush to find financial stability, no clear process was used to allocate the Troubled Asset Relief Program funds among the largest firms. He said that that created further uncertainty and was
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