Fed Hoenig: new rules must be simple
A set of basic, easily understood and enforceable rules for systemically-important institutions are needed, said Thomas Hoenig, the president of the Kansas City Federal Reserve.
Hoenig said that leverage restrictions, for instance, once assigned, were simple to understand and calculate. He also said that risk-based capital standards, in contrast, were complex, procyclical and easier to avoid.
He also said that a clearly defined resolution regime for systematically-important firms was needed. He
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