Volker cuts through it
Paul Volcker, the former Fed chairman whose nerves of steel broke the back of double-digit inflation 30 years ago, shows that he’s still one of the few in government that wants to call the tough shots. Too bad he isn’t more influential. If he were, I doubt Wall Street would be talking about getting back to business as usual.
From the WSJ:
Mr. Volcker, who currently is chairman of the White House’s Economic Recovery Advisory Board, suggested banks should be restricted to trading on their client’s behalf instead of making bets with their own money through internal units that often act like hedge funds.
“Extensive participation in the impersonal, transaction-oriented capital market does not seem to me an intrinsic part of commercial banking,” he said in a speech to the Association for Corporate Growth in Los Angeles.
The article goes on to say that Volcker will speak before Congress to talk more about his proposals, but don’t imagine it will gain much traction.