Paul Volcker: Financial reform is unfinished

[Winehole23]

In any event, while there are differences in the structural approaches to reform in the US and UK, they are in fundamental agreement on the key importance of protecting traditional commercial banking from the risks and conflicts of proprietary trading and other investment activity. Both are consistent with developing a practical authority for resolving bank and other failures of systemically important ins utions. If it is widely agreed upon internationally, that will be the keystone in a stronger international financial system.


One thing is sure: we have passed beyond the stage in which we can expect the officials of central banks, regulatory authorities, and treasuries to rely on ad hoc responses in dealing with what have become increasingly frequent, complex, and dangerous financial breakdowns. Structural change is necessary. As it stands, the reform effort is incomplete. It needs fresh impetus. I challenge governments and central banks to take up the unfinished agenda.

http://www.nybooks.com/articles/arch...siness/?page=3

[101A]

http://www.nybooks.com/articles/arch...siness/?page=3

I challenge governments and central banks to take up the unfinished agenda.

Not holding my breath.

Good article, though.