FDIC’s Thomas Hoenig: Banks Should Meet Capital Minimum to Get Regulatory Relief

WASHINGTON—The No. 2 official at the Federal Deposit Insurance Corp. said banks should get “regulatory relief” if they meet minimum capital requirements and other criteria, weighing in as Congress considers measures to ease rules on smaller banks.

FDIC Vice Chairman Thomas Hoenig, who favors breaking up the largest banks and is influential with members of Congress on both sides of the aisle, said banks should only get regulatory relief if they hold foreign exchange and interest rate derivatives worth less than $3 billion, maintain an equity-to-asset ratio of at least 10%, and don’t engage in trading activity.

Read more: http://www.wsj.com/articles/fdic-banks-should-meet-capital-minimum-to-get-regulatory-relief-1429107301