CHARLOTTE, N.C. — Federal Reserve Bank of Kansas City President Thomas Hoenig said international capital requirements are too lax to prevent another U.S. banking crisis.
Standards set by the Basel Committee on Banking Supervision require “far too little capital,” Hoenig said Tuesday. “That will not prevent the next crisis and will not adequately prepare institutions for the next crisis.”
Large U.S. commercial banks should be broken up, with their activities restricted to lower-risk businesses, Hoenig said during a panel discussion sponsored by the National Association of Attorneys General.
Bloomberg News
