Ex-Fed Chairman Paul Volcker to urge curbing risky trading by commercial banks

February 2, 2010 by · Leave a Comment
Filed under: Policy News 

I fully support Mr. Volcker’s stance on this issue.  Even though it is extremely profitable for commercial deposit taking banks to do trading on their own books, they should either convert into a investment bank or stick to lending which is still very profitable if done properly.  As I have stated before on here, our commercial banks should be our most risk adverse institutions and that is why prudent regulations are needed and should be in place to limit this.

Investment banks are on the other hand, not regulated very much so they are allowed to make very risky trades and profit greatly.  Conversely, if they make bad choices they should be allowed to fail without the same assistance that our vital commercial banks get if we have a classic “run” on the bank.

Washington D.C., Reuters – White House economics adviser Paul Volcker will urge Congress on Tuesday to rein in risky investing by big banks to help prevent them becoming “too big to fail,” according to testimony obtained by Reuters.

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Obama’s economic adviser calls for more reform and oversight of U.S. economy

August 25, 2008 by · 1 Comment
Filed under: Economic News 

We will see if this is just more noise or if we will see some positive change with the new administration. We need “real” currency reform in the United States if we want to keep our prosperity and position as a world reserve currency.

To do that we need to give our financial house in order, combat inflation and fix our flaws so we have fair trade. These things keep our American dream together and makes it so our middle class flourish.

Article:

An economic adviser to Democratic presidential candidate Barack Obama said on Monday that U.S. financial regulation needs modernizing, but hedged on how big a role to give the Federal Reserve.

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