Fed’s Hoenig Sees Economic Danger in Big Financial Firms

Federal Reserve Bank of Kansas City President Thomas Hoenig said the existence of companies whose failure would threaten the financial system is an obstacle to economic growth and impedes competition.

Companies deemed systemically important financial institutions, or SIFIs, “are fundamentally inconsistent with capitalism,” Hoenig said today in a speech in Washington. “They are inherently destabilizing to global markets and detrimental to world growth.”