FDIC's Hoenig Proposes a New Bank Regulation Plan

The transcript discusses a proposal for a new banking structure aimed at creating a safe, competitive, and public-serving system. It outlines a structural separation between traditional commercial banking and non-traditional investment activities, with distinct capital requirements for each. The proposal suggests a higher capital base for commercial banks and addresses regulatory relief by questioning the necessity of current regulations like Basel III. The discussion includes industry feedback, legal implications, and the potential for the proposal to be debated in Congress.

How does the proposal aim to address the issue of banks sitting on capital and not lending it out?

What are the speaker's views on the Basel III regulations and their impact on capital allocation?

What is the proposed approach to handling failures in the banking system without causing systemic issues?