The Senate Banking Committee has sent the nomination of Thomas Hoenig for vice chairman of the Federal Deposit Insurance Corporation to the Senate floor, where his tough position on large banks will be the center of debate.
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.
During his confirmation hearing, Hoenig told Senators on the banking committee that he does not support bailouts for too-big-to-fail banks.
“I am not against big, I’m against too-big-to-fail,” Hoenig said, according to Bloomberg.com. “These institutions should understand themselves and their risk capital. The burden is on them. I don’t support future bailouts.”
Hoenig would replace Martin Gruenberg as vice chairman of the FDIC board. Gruenberg has been nominated to replace former chair Sheila Bair, who stepped down in July.
Before working with the Fed, Hoenig 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.