Volcker Wins over Geithner (and Why This Might Be a Very Good Thing)
January 22, 2010 7:59 AM Subscribe
Obama Breaks with Geithner to support "Volcker Rule" in sweeping new financial sector reform proposal. Following the counsel of highly-respected former Fed Chairman Paul Volcker in a move that would significantly weaken the role of current Treasury Secretary Tim Geithner, Obama's tough new proposals are being received by recent administration critic Robert Reich as a welcome, if overdue, policy correction. Among other things, the new proposals would effectively restore previous restrictions separating deposit and investment banks (as originally imposed by the depression-era Glass-Steagall Act), as well as imposing stiff new capital requirements, and restrictions designed to prevent banks from becoming too big to fail.
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