FDIC’s Hoenig Defends Warren’s Glass-Steagall Act

The Vice Chairman of the Federal Deposit Insurance Corporation (FDIC) has vigorously defended the reenactment of parts of the Glass-Steagall act sought by Senator Elizabeth Warren, along with other prominent members of the United States upper house. The FDIC VC has defended the act from criticism that it would have little effect as it would not have halted the 2008 financial crisis.

An email released today, written by Thomas Hoenig, responded to comments that the 2008 financial crisis was caused by institutions that would not be covered in Glass-Steagall. Hoenig vigorously disagreed with those accusations and...