Supporters of the Volcker Rule on Why Current Bankers Are Bad at Their Jobs
Louis Uchitelle of The New York Times got many of the financial industry’s former (and current) titans to speak on the record about their support of the Volcker rule, and why it would be good for the banking industry and America. What he didn’t mention is that their support of the Volcker rule comes with a rather large criticism of their successors.
Uchitelle talked to George Soros, former Vanguard executive John Bogle, former Reagan Treasury Secretary Nicholas Brady, former Citigroup co-chairman John Reed and George W. Bush SEC chair William Donaldson about the Volcker rule and increased regulatory oversight that would, at a minimum, turn back the regulatory clocks to their heydays. To a man, they all support increased regulation over the banks and the Volcker rule, which would prohibit banks from making speculatory investments with depositor funds.
What’s really interesting, though, is all those men made a great deal of their money in the regulatory environment to which they are suggesting America return, and in which the financial titans of today swear they couldn’t possibly make any money. One could speculate that the guys who made their money while subject to regulation think that the current bankers, who argue they couldn’t make any money if regulated, are simply bad at their jobs. A massive, world-wide financial crisis caused by unregulated speculation might bear out that hypothesis.