President Obama recently said that he plans to nominate a former Kansas City Federal Reserve Bank president to serve as vice chairman on the board of directors at the Federal Deposit Insurance Corporation.
On Thursday, Obama announced Thomas M. Hoenig as his pick for the position. Hoenig has been with the Fed Reserve Bank of Kansas City since 1973 when he entered as an economist in the banking supervision area. In 1981, he was named vice president and in 1986 he became senior vice president.
Hoenig also served as an instructor of economics at the University of Missouri – Kansas City. He is a member of the Board of Trustees of the Ewing Marion Kauffman Foundation and serves on the boards of directors of the Midwest Research Institute and Union Station.
Hoenig received his B.A. in economics and mathematics from Benedictine College and an M.A. and Ph.D. in economics from Iowa State University.
Obama’s future nominee has concerns with last year’s Dodd-Frank financial regulation overhaul law. He has predicted that it “is going to do an enormous amount of harm” and it “encourages further consolidation of the industry,” Hoenig said, ABQJournal.com reports.
Hoenig said that the law is expensive to implement and that in order for banks to comply they will need to scale, which will lead to small banks consolidating.
Currently, there are 7,000 banks in the United States. Hoenig said he expects Dodd-Frank to cause that number to shrink to about 3,500, according to ABQJournal.com.