Friday, September 11, 2009

Volcker: Banks Should Not Trade

Banks should not be allowed to own hedge funds or equity funds and their trading activity should be limited, former Federal Reserve Chairman Paul Volcker said in an interview with Il Sole 24 Ore on Thursday.

"A bank that generates the major part of its income from trading should not be allowed to have a banking license," Volcker, an economic adviser to the Obama administration, said.

Asked about introducing caps for bankers' pay, Volcker said bankers would find a way around that.

"We're seeing it already; it's obscene what they're earning," he said. (more)

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