You’d think after such a calamitous economic fall, there’d be a strong consensus on reinforcing the protections that keep us out of harm’s way. But in some powerful corners, the opposite is happening. Business and political forces, including hordes of lobbyists, are working hard to diminish or destroy these protections. One of the biggest bull’s-eyes is on the Volcker Rule, a section of the Dodd-Frank Act that aims to keep the banks in which you deposit your money from gambling it on their own — sometimes risky — investments.

On this week’s Moyers & Company, Bill talks with the namesake of the Volcker Rule — Paul Volcker, who served two terms as Chairman of the Board of Governors of the Federal Reserve System from 1979-1987, and formerly headed President Obama’s Economic Recovery Advisory Board.

April 5, 2012


In this essay, Bill shares how several American cities, including Los Angeles, Kansas City, and New York City, are challenging big banks, and holding them accountable to their communities.

Restructuring Wall Street From the Bottom Up

April 5, 2012

Category: Bailouts, Regulation, Video

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

9 Responses to “Paul Volcker on the Volcker Rule”

  1. victor says:

    How are foreign banks regulated in their countries? Some are bigger than their US counterparts, see BNP Parisbas, etc.

  2. Frilton Miedman says:

    Am I he only one that see’s this insanity?

    Jamie Dimon, making the rounds on banking deregulation, is very close to turning himself into the poster child for banking & political corruption.

    The smart thing to do, shut up and keep a low profile, seriously, Jamie, you’re the river of the vehicle that just caused a 24 car pile-up leaving people dead and injured – it’s a good idea to stay quiet for a while, at least create the illusion of remorse.

    Then,, Republicans not only fail to “get rid of big government”, they opt to alienate 50% of the voting public by going extreme and attacking contraception, citing religious ideology (.., “Congress shall make no law…”…?)

    Jobs?…tax reform?… foreign trade?…infrastructure?…anyone?

    Never-mind jobs, deficits….let’s keep banks deregulated,’cause it’s worked so well since removing Glass-Steagall, then impose the very “big government” on something as ridiculous as contraception when “big government” was the campaign platform in 2010 for those boneheads.

    I feel like I’m missing something here, either the GOP is 1) insane (and some Dems), 2) they believe Fox Network can do the same “attack of personal Liberty” & “Government takeover” public scare tactic they did in 2010, 3) or the GOP is secretly working to get Obama and a Democratic majority back in the drivers seat.

  3. Barnnie says:

    I’m a republican & have been one for a great many years…… I no-longer recognize “this” right-winged & captured republican party! If one does homework, then it becomes obvious that in 1999, the legislation that allowed uncontrolled OTC derivatives to flourish! Behind the scenes, pushing for this was Phil Gramm (Senate republican) & a dumb president (Bill Clinton) who supported it…..
    —- Thanks to Paul Volcker (my hero) we’re finally trying to bring “control” to this OTC derivative business. By the way, Jamie-boy does not want to see these changes to his ‘cash cows’, OTC derivatives, that have so severly corrupted our financial systems…..

  4. Futuredome says:

    I bet Volcker would support NGDP targetting

  5. Frilton Miedman says:

    Barnnie, extreme indeed, so bad that the Obama campaign is using a clip of a Reagan speech on increasing taxes to the wealthy to put it in perspective. –

    I also agree on Clinton’s part in Gramm-Leach-Bliley, Bush’s CFMA, war mongering stupidity & complete fiscal irresponsibility – this is why independents now outnumber both Dems and Repubs.

    As a Libertarian I watched in horror as the “Tea Party” movement started with a legitimate message that rapidly went from a protest of bailouts for billionaire bankers, to a protest for “corporate liberty”, low taxes for the extremely wealthy and a refusal to accept any form of healthcare reform.

    The root of the problem, big money manipulating media and politics, enough already.

    All the scare tactics and sensationalism in 2010, the likes not seen since Hitler’s use of public fear over Communism to convince the Wiemar to bypass the German Constitution to allow him complete control.

  6. bear_in_mind says:

    Volker and Moyers are sadly some of the few adults left in the room. Unfortunately, the Boomer “kids” never grew-up, know it all, and don’t want to hear what grandpa has to say. Too bad they don’t have the insight to realize if the old geezers didn’t have such incredible ingenuity, there wouldn’t have been an internet/DARPA, mobile phones, and so forth.

    For all the sturm and drang about “Cultural Values”, our American culture has been systematically hijacked by corporate interests. It all stems from the regulatory capture of our government — regardless of political party or orientation. Between Phil Gramm, Alan Greenspan and the pop-culture phenomenon of Gordon Gekko from “Wall Street”, greed, envy and avarice morphed into positive American cultural values.

    For comparison, think of the moniker of the late Oakland Raiders owner, Al Davis: “Just Win, Baby!” It meant something very different in the ’60′s and ’70′s than its interpretation today. It wasn’t about ingesting every illicit substance you could get your hands on (to gain an illegal advantage); rather, it was about playing with as much heart and passion possible to achieve victory.

    We have a serious day of reckoning to come and while I am confident we Americans can handle the truth, I see precious few leaders with the courage and willingness to speak the truth to American citizens. Until that day arrives, we should fear this false sense of reality and security. We’re living on borrowed time and there’s going to be a helluva to pay when the line of credit runs dry.

  7. Francois says:

    “You’d think after such a calamitous economic fall, there’d be a strong consensus on reinforcing the protections that keep us out of harm’s way.”

    Well…nyet! What the financial crisis revealed more than anything else is the extent of the socio-cultural rot that is infecting this society. Despite bipartisan agreement to let systemic fraud rule the country, endless wars and systemic attack against our personal liberties (in particular,m the First Amendment) most congressional seats are deemed “safe” for the incumbents in 2012.

    Pardon my Urdu but…what the fuck does that tell you? That we haven’t suffered enough, that we keep hoping against evidence, and let petty political disputes split us instead of being united against the fraudsters on Wall Street, Congress and Big business.

    Someday, we’ll learn…maybe!

    For an example of corprato-cronyism-legalese that has converted an allegedly “dynamic and strategic” sector of our economy into a bunch of State-dependent conglomerates that the Communist Party of China would not disavow, have a read at this:

    As a bonus, thou shall understand why drugs are so damn expensive in the USA.

  8. [...] Ritholtz is still being a retard about the Volcker Rule:  You’d think after such a calamitous economic fall, there’d be a strong consensus on [...]

  9. Frilton,

    the more I read your Posts, the more I come to the conclusion that you are, really, “Facts’” little Sister, “Emphatic Assertion”..

    (and, iffin’ you need a ref., try scrolling back through these, here, Threads..(on TBP..))