Fed member calls for Wall Street banks break up - papers

A member of the US Federal Reserve has called for Wall Street's financial giants to be broken up to avoid another financial crisis.

Thomas Hoenig, the Kansas City Federal Reserve Bank President, claims the current overhaul of financial regulation in the US will not prevent the largest banks from taking excessive risks and increasing market share, the Telegraph reports. He says: "I am convinced that the existence of too-big-to-fail financial institutions poses the greatest risk to the US economy "They must be broken up. We must make sure that large financial organizations are not in position to hold the US economy hostage. We must not allow organisations operating under the safety net to pursue high-risk activities...