As policymakers seek to strengthen the financial system in the coming years, they should consider establishing a resolution process for nonbanks, Thomas Hoenig, the president of the Federal Reserve Bank of Kansas City, said Monday.

Policy responses to the collapses at Bear Stearns Cos., Lehman Brothers, and American International Group Inc. were "rushed," Mr. Hoenig said. "It is apparent that we would benefit from a clear set of rules for handling such firms, much like we have established to deal with failing depository institutions."

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