Federal Reserve Bank of Kansas City President Thomas M. Hoenig called for diversifying the U.S. financial system by bringing back Glass-Steagall-type provisions for financial services giants.
In an Op-ed piece in The New York Times, Hoenig (left), said that, despite Dodd-Frank reforms legislation that was supposed to eliminate bailouts of financial institutions that were deemed "too big to fail," these institutions have instead grown, using "subsidies they received because they were too big to fail."
Hoenig adds that "after this round of bailouts, the five largest financial institutions are 20 percent larger than they were before the crisis."
