Thomas Hoenig interview: Battle against too-big-to-fail fragments banking

Haunted by the global crisis, policymakers from the US to the UK are erecting national barriers and waging a war against too-big-to-fail banking. Vice-chairman of the Federal Deposit Insurance Corp Thomas Hoenig defends the drive toward balkanization.

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Regulation
• EU-US tensions remain over leverage ratio
The next regulatory battle: bank structures

The G20 meeting in Brisbane in November signaled an apparent watershed in the battle to end too-big-to-fail (TBTF) banking, through the introduction of total loss-absorbing capacity (TLAC) buffers for larger firms, while policymakers beefed up cross-border resolution regimes. Bank of England governor Mark Carney, head of the Financial Stability Board, announced the measures would “substantially complete the job” of “fixing the fault lines” that triggered the global crisis.

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