STOCK MARKET WATCH - Thursday, 22 March 2012

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44. Volcker Says U.S. Needs Reforms in Finance, Government

http://www.bloomberg.com/news/2012-03-21/u-s-needs-more-finance-reform-volcker-says.html

Paul Volker, the former Federal Reserve chairman whose name was given to a provision of the Dodd-Frank overhaul of financial rules, called for reforms of both government and the financial system in a speech yesterday.

Speaking at New York’s Cooper Union, where Abraham Lincoln was propelled to national prominence with a February 1860 speech, Volcker said the U.S. faces economic and political challenges that present a “grave threat” even if they’re mundane compared to the strife that Lincoln confronted.


“It is not only our economic prosperity that’s in jeopardy, but our national security and our ability to play a constructive role in a changing world,” said Volcker, 84.

Volcker said that progress has been made toward improving financial regulatory oversight, capital and liquidity standards and rules for derivatives. He said more needed to be done to regulate money market mutual funds, which he called “a new systemic risk,” and to rebuild a private market for home mortgages to replace the government-sponsored entities that dominate the business.