News, analysis and personal reflections on the markets & the financial sector

Tuesday, March 30, 2010

Volcker keeps pushing for restriction on proprietary trading


Paul Volcker, former chairman of the Federal Reserve, is continuing his advocacy of restricting proprietary trading by major financial institutions and urged lawmakers to "let commercial banks be commercial banks, concentrating on customer interests."

Volcker said his proposal would not weigh on economic growth. "There could be too much liquidity in the system, which encourages risky trading," Volcker said.

"My proposal will have no negative impact on economic growth and even with it in place, there would be no shortage of people ready to take proprietary risk."

No comments: