Barry reports that Paul Volcker went off script and just opened the bomb bays yesterday.
Volcker unloaded on banks and CEOs; he trashed regulators and the inept business schools. He opened fire on the Fed, bombed money-market funds. And while he had good things to say about the financial overhaul law, the bottom line is the system remains at risk.
A couple more excerpts...
...Investment banks became “trading machines instead of investment banks [leading to] encroachment on the territory of commercial banks, and commercial banks encroached on the territory of others in a way that couldn’t easily be managed
[On Business schools' stupidity]: I think that was the general philosophy that markets are efficient and self correcting and we don’t have to worry about them too much.
“Central banks became…maybe a little too infatuated with their own skills and authority because they found secrets to price stability…I think its fair to say there was a certain neglect of supervisory responsibilities”
Other than that, no problems at all!
More at the link.
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