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Financial Regulations: Obama Takes Another Swing at Big Banks
10/31/2011 9:51:00 PM
(Written by Rebecca Lipman. List compiled by Alexander Crawford. Shorts data from Yahoo! Finance)
Obama has made another move to regulate big banks, this time by nominating former Kansas City Federal Reserve Bank President Thomas Hoenig, a prominent critic of large banks, to a key banking industry regulatory post.
The position is for vice chairman of the board of directors of the Federal Deposit Insurance Corporation (FDIC), a finance regulator that insures individual bank accounts up to $250,000. If approved by the Senate he will take the position held by Martin Gruenberg who in turn has been nominated the role of Chairman. Former Chair Sheila Blair stepped down in July.
“Hoenig has been a critic of large banks, arguing they still pose a threat to the financial system and that the 2010 Dodd-Frank financial oversight law did not do enough to address the issue,” reports Reuters.
If Hoenig takes the Vice Chairman role at the FDIC, his sentiment could have a impact on the types of regulations the Senate passes, especially in regard to big banks.
Given the possible addition of Hoenig to the FDIC, we were curious which banking stocks have been seeing the most pessimism from short sellers.
Bears may be pricing in big regulations for these and other institutions – do you think their earnings will be heavily affected?
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