WASHINGTON — The economy would be better off with a system in which there are fewer big financial firms that were at the root of the recent crisis, a top Federal Reserve official signaled on Wednesday.

In a speech at the Chamber of Commerce, Federal Reserve Bank of Kansas City President Thomas Hoenig endorsed a proposal that could force large banks to get rid of divisions that make risky bets with their capital.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.