Paul Volcker to the Rescue
President Barack Obama might have done well to keep former Federal Reserve Chairman Paul Volcker in closer reach during his first year of office rather than rely on the dubious advice of Timothy Geithner and Lawrence Summers. Too late for that -- but hopefully not too late for Volcker to help the president in his future dealings with Wall Street.
President Barack Obama might have done well to keep former Federal Reserve Chairman Paul Volcker in closer reach during his first year of office rather than rely on the dubious advice of Timothy Geithner and Lawrence Summers. Too late for that — but hopefully not too late for Volcker to help the president in his future dealings with Wall Street. –KA
Dig, Root, GrowReuters via Google News:
Asked by the New York Times in October about reports he was losing sway with the Obama White House, Volcker retorted that he “did not have influence to start with.”
That made Volcker’s presence at the announcement all the more significant to showing Obama’s resolve to push the new regulatory approach that Wall Street appears set to fiercely oppose.
“Volcker being there was huge,” said Simon Johnson, a professor at the Massachusetts Institute of Technology and a former chief economist at the International Monetary Fund.
The bank announcement elated many of Obama’s liberal supporters, who have welcomed his tougher rhetoric in recent weeks toward the banking executives he referred to in December as “fat cats.”
Geithner and Summers, veterans of the Treasury Department in the Clinton administration, have been criticized by some liberal supporters of Obama who view them as too cozy with Wall Street. Legislation in 1999 tearing down the Depression-era Glass-Steagall law separating commercial and investment banking passed under their watch.
Obama’s new bank rules would not bring back Glass-Steagall but would revive its spirit.
This year, we’re all on shaky ground, and the need for independent journalism has never been greater. A new administration is openly attacking free press — and the stakes couldn’t be higher.
Your support is more than a donation. It helps us dig deeper into hidden truths, root out corruption and misinformation, and grow an informed, resilient community.
Independent journalism like Truthdig doesn't just report the news — it helps cultivate a better future.
Your tax-deductible gift powers fearless reporting and uncompromising analysis. Together, we can protect democracy and expose the stories that must be told.
This spring, stand with our journalists.
Dig. Root. Grow. Cultivate a better future.
Donate today.
You need to be a supporter to comment.
There are currently no responses to this article.
Be the first to respond.