Volcker Alliance Calls for Major Overhaul of Financial Regulation
Calling the system for overseeing financial institutions in the United States highly fragmented, outdated, and ineffective, the Volcker Alliance on April 20 laid out a vision for reshaping regulation for the 21st century. A multitude of federal agencies, self-regulatory organizations, and state authorities currently share oversight of the financial system under a framework riddled with regulatory gaps, loopholes, and inefficiencies. Virtually every post-mortem of the financial crisis cites the convoluted regulatory system as a contributing factor in the financial meltdown. In a report released at a press conference held by Alliance Chairman Paul A. Volcker, the Alliance recommended a simpler, clearer, adaptive, and resilient regime that is on par with the modern regulatory frameworks of other developed countries. The Federal Reserve would be at the helm of a reorganized regulatory system that eliminates the Office of the Comptroller of the Currency and combines other agencies.
Read media coverage of the report and press conference below.