Volcker Says Obama Plan Leaves Opening for Bailouts

http://www.nytimes.com/2009/09/25/business/economy/25regulate.html?ref=business GREAT!!!! WASHINGTON (AP) — Paul A. Volcker, a top White House economic adviser, said Thursday that the Obama administration’s proposed overhaul of financial rules would preserve the policy of “too big to fail” and could lead to future banking bailouts. Skip to next paragraph Mark Wilson/Getty Images Paul Volcker,... [more]

http://www.nytimes.com/2009/09/25/business/economy/25regulate.html?ref=business GREAT!!!! WASHINGTON (AP) — Paul A. Volcker, a top White House economic adviser, said Thursday that the Obama administration’s proposed overhaul of financial rules would preserve the policy of “too big to fail” and could lead to future banking bailouts. Skip to next paragraph Mark Wilson/Getty Images Paul Volcker, former chairman of the Federal Reserve, warned against keeping a regulatory system in which banks are allowed to remain "too big to fail." Multimedia Volcker on Bank Systematic Risks (CNBC)Video Volcker on Bank Systematic Risks (CNBC) Related Times Topics: Paul A. Volcker | Financial Regulatory Reform Mr. Volcker, a former Federal Reserve chairman, told Congress that by designating some companies as critical to the broader financial system, the administration’s plans would create an expectation that those companies enjoy government backing in tough times. That implies those financial companies “will be sheltered by access to a federal safety net,” he said. He urged lawmakers to make clear that nonbank companies would not be saved with federal money. [less]