March 7, 2009 – 23:52:20
Interesting comments Friday from the president of the Federal Reserve Bank of Kansas City. He seems to favor cleaning house at the “too big to fail” banks and temporarily nationalizing them. His discussion on large banks would seem to apply beyond the financial sector:
“In fact, for failed institutions that have proven to be too big or too complex to manage well, steps must be taken to break up their operations and sell them off in more manageable pieces. We must also look for other ways to limit the creation and growth of firms that might be considered ‘too big to fail.'”
The Fed clearly is trying to arrive at a strategy. Will this be it?