New Fed regional Governor discusses the need to reduce the threat of banks still ‘too big to fail.’  Kashkari on Ending TBTF.  Kashkari on Ending TBTF

Kashkari, who has worked for Goldman Sachs and in the Treasury Department during the administration of George W. Bush, is newly appointed to the US Federal Reserve in Minneapolis.  He finds big banks a significant threat to the US economy.

It is well to remember that banks are an unusual business.  They use other people’s money to store deposits, grant loans and earn interest on the monies they hold. These monies are always other peoples’ monies, and for this reason the business needs to be highly regulated.  It has not been.