Fed's Hoenig criticises Tarp

Thomas Hoenig, the president of the Kansas City Federal Reserve, has criticised the Troubled Assets Relief Programme (Tarp) for its lack of a clear set of principles and said that its implementation appears ad hoc and opaque in dealing with banks judged too big to fail.

Hoenig said: "We understandably would prefer not to nationalise these businesses, but reacting as we are, we nevertheless are drifting into a situation where institutions are being nationalised piecemeal with no resolution of the

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