Fed’s Hoenig calls for counter-cyclical leverage ratio, slams Basel requirements
Thomas Hoenig, the president of the Kansas City Federal Reserve, on Thursday reprimanded regulators for failing to properly manage banks during the run-up to the financial crisis and called for a counter-cyclical ceiling on leverage ratios.
Speaking before the House Financial Services Oversight and Investigation Subcommittee, Hoenig advocated changing the rules on leverage from a capital requirements system based on individual risks to one that places a ceiling on the amount that can be lent
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