im senate banking committee. der mann hinter obama's regulierungsbemühungen. wahrscheinlich keine grossen neuigkeiten, aber vielleicht schafft er es ja noch ein bisschen mehr staub aufzuwirbeln.
"Feb. 2 (Bloomberg) -- Former Federal Reserve Chairman Paul Volcker plans to tell the Senate Banking Committee today that hedge funds and private-equity funds should be allowed to both profit and fail, without any expectation of government support.
“Managements, stockholders or partners would be at risk, able to profit handsomely or to fail entirely, as appropriate in a competitive free-enterprise system,” Volcker says in remarks prepared for testimony before the panel.
The 82-year-old former Fed chairman defends President Barack Obama’s Jan. 21 proposal to limit the size and trading activities of banks, saying it would reduce risk in the financial system while leaving banks with a “wide range” of profitable services to offer.
Volcker will call on lawmakers to strengthen regulation of financial firms whose failure could pose a threat to the broader economy by imposing stricter requirements for capital and liquidity. He is scheduled to begin his testimony at 2:30 p.m. in Washington.
“What we plainly need are authority and methods to minimize the occurrence of those failures that threaten the basic fabric of financial markets,” he says in the text of the speech obtained by Bloomberg News.
He also calls for resolution authority to take control of large, failing financial institutions, in a process that he said would amount to “euthanasia, not a rescue.”
“It is critically important that those institutions, its managers, and its creditors do not assume a public rescue will be forthcoming in time of pressure,” Volcker says. "
[Bloomberg] |
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