Paul Volcker (Paul Volcker), head of the Advisory Committee on economic recovery, stunned everyone in the business conference in Sussex, saying that there is "only a very little evidence of innovation in financial markets, which had a marked influence on the productivity of the economy."
Former Fed chairman told the audience, which included some of the world's biggest financiers that "the only significant" contribution to the industry for 25 years, were talking automatic machines, which, he said, at least, proved to be "useful."
Echoing FSA chairman Lord Turner (Lord Turner), Walker told delegates that the banks are "socially useless", at a time when they discussed the restructuring of the financial system to vovzrascheniya to growth. He said that credit default swaps and collateralized mortgage debt obligations sent the economy "directly to the edge of the abyss", and added that the economy is growing "much faster" in the 60's without these products.
When a stunned audience member suggested that Walker is not really meant in the bond markets and securitization, and nothing is put in these words, Volcker said: "You can innovate as much as you want, but this should be done in a structure which will not endanger the whole economic system. "
He also said that he agrees with billionaire investor George Soros (George Soros), who said that investment banks should adhere to customer service, and "own trading operations should be removed from the investment banks and hedge funds to which they belong."
Walker argued that the banks do not have the Gisenyi important role as deposit holders and creditors. This means that it is appropriate to "adjust them with one hand and protect the other." He said that the more dangerous financial activities should be limited to hedge funds, which the public might say: "If you're ruining - ruined. We will not help. Your reserves are over, lenders run a great risk, but no one else suffers from this. "
Former Fed chairman told the audience, which included some of the world's biggest financiers that "the only significant" contribution to the industry for 25 years, were talking automatic machines, which, he said, at least, proved to be "useful."
Echoing FSA chairman Lord Turner (Lord Turner), Walker told delegates that the banks are "socially useless", at a time when they discussed the restructuring of the financial system to vovzrascheniya to growth. He said that credit default swaps and collateralized mortgage debt obligations sent the economy "directly to the edge of the abyss", and added that the economy is growing "much faster" in the 60's without these products.
When a stunned audience member suggested that Walker is not really meant in the bond markets and securitization, and nothing is put in these words, Volcker said: "You can innovate as much as you want, but this should be done in a structure which will not endanger the whole economic system. "
He also said that he agrees with billionaire investor George Soros (George Soros), who said that investment banks should adhere to customer service, and "own trading operations should be removed from the investment banks and hedge funds to which they belong."
Walker argued that the banks do not have the Gisenyi important role as deposit holders and creditors. This means that it is appropriate to "adjust them with one hand and protect the other." He said that the more dangerous financial activities should be limited to hedge funds, which the public might say: "If you're ruining - ruined. We will not help. Your reserves are over, lenders run a great risk, but no one else suffers from this. "
The Telegraph
December 8
December 8
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