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Investing

The Volcker Rule Is a Banking Crisis Waiting to Happen

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Published

John Tamny of Forbes
 
The wise minds of the financial world have, it seems, reached a banking compromise that will please everyone. Banks benefiting from their FDIC backing and ability to access the Federal Reserve’s discount window will be required to curb their speculative activity, while those that do not receive explicit government aid will be free to take big risks as well as fail.

Former Fed Chairman Paul Volcker is the author of this plan, and in a letter to the editor in last week’s Wall Street Journal, former Treasury secretaries W. Michael Blumenthal, Nicholas Brady, Paul O’Neill, George Shultz and John Snow lent their support. The bipartisan backing of the Volcker Rule by some of the “gray eminences” of finance seems to suggest relatively easy passage of his idea, despite rumblings last week that the U.S. Senate wasn’t exactly sanguine.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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