Volcker says banks should not make bets with own capital

09/17/2009 | Wall Street Journal, The · Bloomberg

Paul Volcker, former chairman of the Federal Reserve and current chairman of the White House's Economic Recovery Advisory Board, is suggesting that limitations be placed on the trading activity and risk taking of the country's banks. Volcker said banks should be restricted to making trading bets with their clients' money and not their own. "Extensive participation in the impersonal, transaction-oriented capital market does not seem to me an intrinsic part of commercial banking," he said. Volcker's comments are expected to intensify the debate over the government's regulatory revamp.

View Full Article in:

Wall Street Journal, The · Bloomberg

Published in Brief: