"We do not see this plan appeasing industry critics on Capitol Hill," he wrote in a research note. "Hoenig did not fully endorse the combination of Basel III and the extra leverage proposal. There were similar questions by other FDIC board members. So there is a feeling coming from the agency that regulators might not have gone far enough with the leverage proposals."
He said lawmakers such as Sen. Sherrod Brown, D-Ohio, might "pick up on this dissent" and continue pushing legislation to break up the biggest banks.
Written by Bill McConnell and Jane Searle