The banking agencies continue to propose mandating greater debt for large banking organizations to enhance banking resiliency. They propose this when, by their own words, they know that an equivalent amount of equity capital would be more successful. finregrag.com/p/bank-resilie…

Hoenig testimony on Basel III capital. mercatus.org/research/feder…

While Federal Reserve policy discretion is judged critical to the success of its monetary policy, it is also true that its performance overtime has been mixed . The attached article offers a history and means to improve outcomes. finregrag.com/p/monetary-pol…

A recent podcast of Tom Hoenig with Kathleen Hays on bank capital, Base 3 Endgame, and the misuse of the risk-weighted capital standards in banking. kathleenhays.substack.com/p/leverage-not…

Having committees of regulators attempting to assign risk weights to assets of banks across the globe, with varied business models is fundamentally political and does more harm than good. …nationalreview-com.cdn.ampproject.org/c/s/www.nation…

I think if academe was less siloed and also more open to non PhD professors and experts of practice it would help. Many academics are doing great research but aren’t clued in enough to how their work connects (or doesn’t) to real people and real world issues

See my review of Admati and Hellwig's book, "The Bankers' New Clothes", and the mythology of the mega bank. See my review of Admati and Hellwig's updated book, "The Bankers' New Clothes", and the mythology of the mega bank. substack.com/home/post/p-14…

Sheila Bair, former Chair of the FDIC, and my comments on the FDIC's proposed policy on bank merger reviews. finregrag.com/p/thomas-hoeni…

I am pleased to be a part of the diverse group of former policy makers, who know from experience that extending government underwritten insurance to mortgage servicing special interests, and adding to the morale hazard problem in the U.S., is a bad idea. politico.com/news/magazine/…

An interview with Bloomberg regarding monetary policy and the federal debt. bloomberg.com/news/videos/20…

Bank Consolidation: Is this time different? finregrag.com/p/consolidatin…

Should commercial banks be the other central bank?finregrag.com/p/should-comme…

Long-term Stability Requires Fiscal Discipline Not Trade Barriers. finregrag.com/p/the-uncertai…

Here is the best explanation, by my colleague, Steph Miller, as to why risk-weighted capital is destabilizing the industry. finregrag.com/p/yes-risk-bas…

There is a proposal to exempt government securities from bank capital standards. This proposal would enable the Treasury to expand money independent of the federal reserve. The implication for the growth in bank balance sheets and future inflation is enormous.

Because Congress cannot control its spending, the Treasury issues significant new debt.Treasury pays the banks guaranteed interest and exempts them from capital as a “backstop” to rate changes and loss.They are TBTF, making Fed the “backstop”. Nice job if you can get it.

Five Decades of Banking Crises: What Have We Learned? finregrag.com/p/five-decades…

Public comment on Proposal to Weaken Capital Rules for G-SIBs by Sheila Bair, Tom Hoenig, and Thomas Curry. finregrag.com/p/comment-on-p…

With the Debanking EO in the news, now seems like a good time to highlight the paper I wrote with Trace Mitchell in 2019 when we were at Mercatus Center, on the problems posed when banks use their government-granted power to play regulator. (Link in last post)

Fiscal policy dominance over monetary policy comes in stages as exceptions become the norm. finregrag.com/p/the-fed-cant…