Volcker Says Governments Should Forcibly Restructure Global Banking

Paul Volcker, an adviser to president Obama, believes that governments should forcibly restructure global banking because tougher capital and liquidity measures would not be enough to prevent another financial crisis.

Speaking in London Volcker said he disagreed with UK regulators who think that the problems of so-called “casino banking” can be addressed by simply having banks hold more capital to cover their proprietary trading and in-house hedge funds. Instead, Mr. Volcker wants to curtail risk-taking by systemically important financial institutions through limiting their proprietary trading ability while banning them from owning hedge funds and private equity shops – FT