Top Leaderboard, Site wide
Shop the Truthdig Gift Guide 2014
December 20, 2014
Truthdig: Drilling Beneath the Headlines
Sign up for Truthdig's Email NewsletterLike Truthdig on FacebookFollow Truthdig on TwitterSubscribe to Truthdig's RSS Feed

Get Truthdig's headlines in your inbox!








Truthdig Bazaar more items

 
Ear to the Ground

Volcker Unloads on Nation’s Finance System

Email this item Email    Print this item Print    Share this item... Share

Posted on Sep 24, 2010
Paul Volcker
AP / Wong Maye-E

Former Federal Reserve Chairman Paul Volcker in 2008.

In a spare-no-one, off-the-cuff critique, former Federal Reserve Chairman Paul Volcker delivered a blistering analysis of the nation’s financial system Thursday, criticizing banks, regulators, business schools, the Fed and money-market funds in a “plea for structural changes in markets and market regulation.”

Volcker jettisoned his prepared remarks at the Federal Reserve Bank of Chicago and spoke candidly about the promises of the new financial overhaul law. He also acknowledged the system’s limitations given its dependence on individual regulators, who are heavily lobbied by banks and politicians. —JCL

The Wall Street Journal:

Former Federal Reserve Chairman Paul Volcker scrapped a prepared speech he had planned to deliver at the Federal Reserve Bank of Chicago on Thursday, and instead delivered a blistering, off-the-cuff critique leveled at nearly every corner of the financial system.

Standing at a lectern with his hands in his pockets, Volcker moved unsparingly from banks to regulators to business schools to the Fed to money-market funds during his luncheon speech.

He praised the new financial overhaul law, but said the system remained at risk because it is subject to future “judgments” of individual regulators, who he said would be relentlessly lobbied by banks and politicians to soften the rules.

Read more

More Below the Ad

Advertisement

Square, Site wide

New and Improved Comments

If you have trouble leaving a comment, review this help page. Still having problems? Let us know. If you find yourself moderated, take a moment to review our comment policy.

By Inherit The Wind, September 26, 2010 at 10:41 am Link to this comment

Wilson might have committed bad policy, even criminal policy, but to call it treason is to misuse the word.  In fact, the US banking system took over from the British following WWI, creating essentially a credit war. House of Morgan was on the British side because Morgan was sole conduit of funds to a and from the UK. So JP Morgan turned against his nation, but lost.

Report this

By toyotabedzrock, September 25, 2010 at 1:44 pm Link to this comment
(Unregistered commenter)

Business schools have been teaching that greed is good and that a totally free market will always work.

My brother just graduated and they taught him that crap year after year and it was hard to convince him otherwise even as the economy collapsed.

Report this

By samosamo, September 25, 2010 at 8:05 am Link to this comment

****************


My sentiments also. The founders of this country
fought hard to keep central banking out of here.
According to some of those founders, that was as
major if not the major cause of starting the
Revolutionary War. And in between then and
when woodie the woodpecker wilson slicked into
office by signing the federal reserve act of 1913,
there were numerous attempts to create by
various crooks a central back here.

Only woodie the woodpecker wilson’s treason of
signing it into law got it made along with many
members of congress and shady shyster bankers
paying for the act of writing the bill, making deals
and payoffs to those complicit congressmen to
complete the plan. And woodie was given the
presidency for the icing on the cake.

That was 90 some odd years ago and from a
listing of recessions since then, which this new
central bank was supposed to prevent, except for
the crookedness of it, the federal reserve act
should have long ago been repealed. Only the
threat from what those major bankers and
financiers would do to the economy is a big
reason, no matter how sound or unsound, that
we still have this insidious federal reserve
working as it does today.

Report this
Fat Freddy's avatar

By Fat Freddy, September 25, 2010 at 6:11 am Link to this comment

Here’s the money quote from the article:

Volcker said it was a “miracle” that despite all the criticism aimed at the Fed the central bank “came out with enhanced regulatory authorities rather than reduced regulatory authorities.”

In actuality, the Federal Reserve is the ultimate regulator. They control the supply of money. They decide who gets what, and at what interest rate. They determine the reserve requirements. They also have zero accountability to the government and the people.

Under the new Financial Reform Bill, the Fed has even greater regulatory authority, as Volcker stated, and still no accountability. The “trade-off” was supposed to be the Paul/Grayson “Audit the Fed Amendment”. But that got trashed in the Senate by Bernie “Back-Stabber” Sanders. In fact, the new Consumer Financial Protection Committee will be housed under the Federal Reserve.

So, what’s the problem with the Federal Reserve? There are some, such as myself, that there shouldn’t be a central bank at all. Thomas Jefferson, James Madison, and Andrew Jackson were vehemently opposed to central banking of any sort. Central banking represents an unnatural, collusive alliance between government and bankers. Just look at the members of all of the Board members of the Federal Reserve and their regional banks. How many of those Board members are actively employed by banks? Plus, the banks are the “shareholders” of the Fed. How can one possibly trust an institution to “protect them”, when it is controlled by the very people it is supposed to be protecting you from???? Under this current scenario, legislative “regulations” are useless, unless there are serious changes to the Federal Reserve Act.

Report this

By samosamo, September 24, 2010 at 6:45 pm Link to this comment

****************


What is key is stopping the lobbying and
prosecuting it for the criminal bribery and
influence peddling that it is where, if there was a
real functioning law enforcement and justice
system they could have 2 criminals to prosecute,
the briber(lobbyist) and those taking the
bribe(elected person or government employee).

Influence Peddling. If I can’t scrap up
$500,000.00 to pay a congressperson or a
regulator do what I want, why should anybody
have that influence that has directly led to this
financial/economic terrorist attack from our own
home grown financial terrorists?

Report this

By CaptRon, September 24, 2010 at 2:45 pm Link to this comment

I’d be interested to see the prepared speech copy in order to better qualify his mindset, and better judge the man. It might alter my perspective of the man within the man. For me, it is don’t say what you won’t do.

Report this
 
Monsters of Our Own Creation? Get tickets for this Truthdig discussion of America's role in the Middle East.
Right 1, Site wide - BlogAds Premium
 
Right Skyscraper, Site Wide
Right 2, Site wide - Blogads
 
Join the Liberal Blog Advertising Network
 
 
 

A Progressive Journal of News and Opinion   Zuade Kaufman, Publisher   Robert Scheer, Editor-in-Chief
© 2014 Truthdig, LLC. All rights reserved.

Like Truthdig on Facebook