Paul Volcker, former chairman of the Federal Reserve, expressed more concerns about the financial sector and the Obama administration's proposal to overhaul its regulatory framework. Specifically, he has doubts about the White House's plan for banks deemed "too big to fail." Speaking at a House Financial Services Committee hearing, Volcker floated another idea. "Maybe the best reform we could make is have a big tax on financial engineers so that they can't make up all these new things quite so rapidly, because it's this highly complex, opaque financial engineering which gave a false sense of confidence," he said.
Published in Brief: