Wednesday, October 21, 2009

I Never thought I'd hear ... (continued)

Borrowing a term used in the article referred to, maybe the suggestion of regulating bank's activities a little more strictly as suggested in my last blog post wasn't as quixotic as some may have thought. If it was, I seem to be in some fairly good company.

Please click on the title to link to a NYT article on what Paul Volcker has been suggesting to the Obama Administration and an extract from said article is below:

"The aging Mr. Volcker (he is 82) has some advice, deeply felt. He has been offering it in speeches and Congressional testimony, and repeating it to those around the president, most of them young enough to be his children.

He wants the nation’s banks to be prohibited from owning and trading risky securities, the very practice that got the biggest ones into deep trouble in 2008. And the administration is saying no, it will not separate commercial banking from investment operations.

“I am not pounding the desk all the time, but I am making my point,” Mr. Volcker said in one of his infrequent on-the-record interviews."

Recommend at least a quick read of the full article. And no, I don't mean to say "I told you so"!

Interesting to see if a debate on whether we should go back to Glass-Steagall type banking regulation now begins. My recommendation - these are uncertain times and uncharted waters for everyone involved - nothing should be taken off the table.

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