Volcker Defends a Rule Bearing His Name
New York Times’ DealBook blog
May 9, 2012
Testimony by: Paul Volcker, Belfer Center International Council member
Topic: Volcker’s Congressional testimony regarding the Volcker Rule
“The Volcker Rule, loathed by many bankers, still has the support of an influential Wall Street critic: Paul A. Volcker.
The former chairman of the Federal Reserve defended the regulatory crackdown that bears his name, telling Congress on Wednesday that the Volcker Rule was a ‘solid step toward reining in’ banks that are considered too big to fail.
Mr. Volcker has championed efforts to bar banks from trading with their own money, a practice known as proprietary trading that is outlawed under the new policy. The Volcker Rule, a crucial component of the Dodd-Frank regulatory overhaul law, was rooted in his belief that banks should not place risky bets while enjoying government deposit insurance and other backing.”
Volcker’s testimony was also discussed in a video on the Washington Post site available here.