Paul Volcker, an economic adviser to the White House and a former chairman of the Federal Reserve, expressed confidence that Congress will pass legislation to overhaul the financial-regulatory system this year. "I feel more optimistic than I would have felt a month or two ago," Volcker said. He also warned that state aid extended to the banking sector has created a "moral hazard." "There is an expectation that very large and complicated financial institutions will not be allowed to fail," he said.
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