The president of the Federal Reserve Bank of Kansas City, Thomas Hoenig, said Wednesday that the so-called Volcker Rule — a proposal to ban banks from proprietary trading and investing or sponsoring hedge funds — is essential to end "too big to fail."

In a speech before the U.S. Chamber of Commerce, Hoenig also emphasized that Fed supervision of banks was essential to monetary policy while a reform bill must give the government resolution powers over systemically important firms.

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