Friday, September 24, 2010

Volcker Blasts Banksters, Financial System in Impromptu Speech at Chicago Fed | FDL News Desk

Volcker Blasts Banksters, Financial System in Impromptu Speech at Chicago Fed | FDL News Desk:

"Banking — Investment banks became “trading machines instead of investment banks [leading to] encroachment on the territory of commercial banks, and commercial banks encroached on the territory of others in a way that couldn’t easily be managed by the old supervisory system.”



Financial system — “The financial system is broken. We can use that term in late 2008, and I think it’s fair to still use the term unfortunately. We know that parts of it are absolutely broken, like the mortgage market which only happens to be the most important part of our capital markets [and has] become a subsidiary of the U.S. government.”"

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