Interview with Dr. Thomas Hoenig, FDIC Vice-Chairman

Featuring Dr. Thomas M. Hoenig

Tom Hoenig, Vice Chair of the FDIC, joins Dr. Pippa Malmgren for an eye-opening conversation centered around the workings of the Federal Reserve. Under discussion are how to reconcile market intervention to the business cycle, putting trust in trends rather than momentary data points, and addressing the burning question: is the U.S. still a free market, or has it morphed into a government-sponsored economy?

Published on
12 October, 2015
Topic
Monetary policy, Global Outlook, Financial System
Duration
64 minutes
Asset class
Bonds/Rates/Credit, Equities, Currencies
Rating
12

Comments

  • ME

    Mary E.

    13 5 2016 20:02

    1       0

    Why didn't Pippa discuss Hoenig's 2011 paper about restructuring the banks? It was a very important paper and his omission of its content and her oversight resulted in a very unfulfilling interview--

  • RA

    Ricardo A.

    7 12 2015 18:47

    0       0

    Very impressed with Pippa. She doesn't hold herself back, asking all the tough questions .. in a charming way.

  • RO

    Robert O.

    5 11 2015 17:03

    0       0

    We survived the S&L crisis without saving the "banks". Now the banks are too big to fail? Everything can fail. What do we sacrifice next time when the Ph.D standard = true value of fiat currency.

  • LS

    Lorenz S.

    25 10 2015 10:47

    0       0

    A great interview.

  • SJ

    Suzanne J.

    23 10 2015 04:49

    0       0

    Reading 'Panic On Wall Street' Robert Sobel. First chapter "William Duer and the Panic of 1792" reason - bank securities speculation. I am gobsmacked! Great interview, Pippa - you nail every question.

  • JH

    John H.

    20 10 2015 10:29

    5       1

    He may well be a sweet talker, but I don't believe he is genuine. Like the rest of his central-bank ilk he says one thing, and does something else.

  • SB

    Stewart B.

    19 10 2015 12:01

    0       0

    Another great interview Pippa. A recurring theme seems to be our government(s) and central bank(s) short term thinking, homogenous thinking and hubris.

  • PV

    Peter V.

    18 10 2015 08:06

    0       2

    Outstanding interview
    If only the politicians would listen !

  • RA

    Robert A.

    17 10 2015 21:33

    2       0

    I love being in Pippa's Parlour". Thanks RV.

  • SS

    Stewart S.

    17 10 2015 20:37

    1       0

    An excellent lesson in how the world should work & enough to be worried about how the system in all screwed up

  • LV

    Luís V.

    16 10 2015 21:11

    3       0

    And loved the pearl: "we have been training the market on 0% for too long..."
    This is an image to a CB bureaucrat mind. Chilling.
    Phd standard at its best - h/t to James Grant. (2/2)

  • LV

    Luís V.

    16 10 2015 21:06

    1       0

    Difficult job Pippa, I believe.
    Too much thinking on words to say from Thomas, not to harm the Narrative of Central Banks success.
    Re market & choice in econ - does he know Mises´ Human Action? 1/2

  • DA

    David A.

    16 10 2015 13:16

    3       1

    Wonderful interview. Dr. Hoenig is one of the few adults in Washington.

  • SP

    Steve P.

    16 10 2015 05:08

    3       0

    Brilliant questioning Pippa - superb intrerview. The icing - central planning discussion of how a democracy ends up with a more cenralised planning system than that of Russia at its zenith. Hhmm!!

  • pm

    preston m.

    16 10 2015 03:29

    4       1

    Excellent interview and certainly not what I was expecting. I appreciate Mr. Hoenigs honesty.

  • SC

    Shaun C.

    15 10 2015 19:10

    3       0

    How hard is this? Reinstate Glass Steagall. Bonus via Coco bonds. No more zero risk weighting. Pay US Tsy for liquidity support as they are GSEs. What can get fixed with Dimon on NY Fed board?

  • MB

    Martin B.

    15 10 2015 08:51

    6       3

    Why not ask him to explain the FED being owned by private banks and their criminal agenda to manipulate markets in the best interests of it's shareholders? Research 'The Creature from Jekyll Isle'.

  • JS

    James S.

    15 10 2015 08:46

    5       1

    Amazing and startling, thought provoking candor from a person that high up in the government eschelons is not easy to coax out. Brava, Dr M!!

  • WB

    William B.

    15 10 2015 03:43

    2       0

    Great interview and discussion!!

  • CD

    Charles D.

    15 10 2015 02:19

    10       0

    Previously I watched Pippa interview Dr Alan Meltzer...Now this one...Her informed questions...and soft demeanor...brought forth the candid answers we need to hear....Bravo...Thank you.

  • JS

    John S.

    14 10 2015 16:20

    2       0

    Pippa, Great discussion. I applaud the openness of you both.
    I would love to comment, but the comment section is to short for a complete thought.

  • TP

    Ting P.

    14 10 2015 11:21

    12       0

    We don't have a gold standard anymore. We have an academic standard. :)

  • AP

    A P.

    14 10 2015 07:12

    3       0

    Sobering questions; remarkably thoughtful answers.

  • sa

    santosh a.

    14 10 2015 06:53

    10       0

    This interview confirms that we are f**d as a society until we have a massive crisis of confidence. We are surely moving deeper into the quagmire of central planning over the medium term. Weimar next?

  • EA

    Ellen A.

    14 10 2015 00:19

    2       0

    "It's your money at risk"..great quote. Now along those lines...let's see a segment on possible future bail-ins & NIRP. Does the FDIC have what it will take? Where do we put our cash?

  • PR

    Peter R.

    13 10 2015 22:12

    11       0

    The last 20 minutes of this interview is outstanding. Brilliant questions and some honest and frightening answers. So much to take away from this. Thanks Pippa.

  • DH

    Dale H.

    13 10 2015 20:17

    2       1

    Bravo Pippa grt qu/s. The bank creditors: Depositors also? Re G20 Brisbane. Also Larry Summers + many others WANT cashless society & NIRP too, More on these we'd be good. Wide ranging + thoughtful :)

  • SS

    Sam S.

    13 10 2015 18:53

    14       1

    With all due respect, listening to the same things we already know. How about enforcement, rule of law and most importantly creating a way to stop the madness? America has lost its way.

  • db

    don b.

    13 10 2015 18:41

    7       0

    We could just admit that the fiat central planning regime has failed. Wealth gap, real unemployment, exploding debt, collusion between banks, Fed & government. Massive bank crime, deep capture etc.

  • RF

    Richard F.

    13 10 2015 18:08

    1       0

    Great job Pippa. The one question i wanted you to ask about are the "bail-in" provisions in Dodd-Frank. Since he is with the FDIC how is he going to protect the savers from loosing his deposit.

  • TH

    Timo H.

    13 10 2015 17:32

    8       0

    Pippa, I think you just set a new benchmark in financial journalism!

  • GT

    Graham T.

    13 10 2015 15:35

    4       1

    Best interview ever. Only problems are inflation, Soviet-style command economy, potential social conflict and TBTF. Thanks Janet

  • EL

    Elizabeth L.

    13 10 2015 15:10

    6       1

    Intensely informative discussion. I will watch this interview many more times. Great job Thomas and Pippa.