Regulatory Relief for Banks that Rarely Fail. Why the Red State Rep Inaction?

You would think the Regulatory Relief For Banks that Rarely Fail proposal from former FDIC Vice Chairman Thomas Hoenig would have a gotten an enthusiastic reception in Congress from Red State Representatives working to favor community banks with simple regulation and devote the Dodd Frank burden on to the Wall Street behemoths with huge derivative and trading positions to defend. Not sure how Jeb Hensarling, chairman of the House Committee on Financial Services and Ted Cruz supporter, defends the inaction unless the financial lobby has him in their pocket. Congressman Jim Himes, Democrat of Hedge Fund Fairfield County Connecticut and minority member of Jeb's committee, has been contacted on this issue with no answer, but as a former Goldman Sachs executive we know where his heart is.    

Reduce Dormant Assets and Banks from Playing with Each Other

"Fed Proposes Rule Capping Business Among Banks" is a patch for an unwieldy operating system.  A simple rewrite would be for the Federal Reserve to require banks which control assets greater than 1% of the Gross Domestic Product to split into entities where they all control less. With less concentrations of dormant assets there is less for banker's to use to make derivative contracts.