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Thomas M Hoenig: Sec of Treasury for Paul Administration?

"Conventional Fed Wisdom, Defied" By GRETCHEN MORGENSON


(Thomas Hoenig will be an ideal Sec of Treasury in Ron's administration. He has been courageously vocal about Fed Res policies.)

"Back in 1996, in a speech at the World Economic Forum in Davos, Switzerland, he presciently warned about the dangers of expanding the federal safety net to cover financial institutions trading complex derivatives and structured finance vehicles.

Pushing for a new regulatory regime that would deny a safety net to institutions engaged in risky activities, he told the attendees: “The threat of failure keeps a bank honest and inhibits it and the industry from trending toward excessive risks. Without this market discipline provided by creditors willing to withdraw their funds when they suspect a bank of being unsafe, banks have an incentive to take excessive risks.”

Mr. Hoenig’s prescription was to bar institutions that engage in risky business from offering government-backed deposits and to minimize their access to emergency Fed loans. Although he has been vindicated in this view, big bankers howled and regulators yawned at the time."

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I wonder where Edwin Viera

I wonder where Edwin Viera will fit in.

ytc's picture

What does Edwin want?

A federal judgeship?

ytc's picture

Dr. Thomas Hoenig is the Federal Reserve Bank of Kansas City

President, who was interviewed at Ron Paul's Subcommittee’s hearing entitled, “Impact of Monetary Policy on the Economy: A Regional Fed Perspective on Inflation, Unemployment, and QE3.”

He has an articulate mild-manner of an insider, but with a courageous conscientious fire and a clear message of an activist, very compatible to Ron's.