In what moderator Professor Eric Pan called a “Charlie Rose-style” talk — otherwise known as a panel discussion, ahem — the two covered the Volcker rule and financial reform proposals.
One takeaway gleaned from the tete-a-tete? Mr. Peepers, er, Cohen doesn’t approve of the Volcker Rule. Said he, “I have the greatest respect for Volcker, but in this case I will respectfully disagree.”
Right on, Mr. Cohen. Pointing out flaws in the plan that have been mentioned before, he brought up the fact that a definition of proprietary trading, which the Volcker rule restricts, is virtually nonexistent. As well, he thinks the rule will increase the overall risk in the financial system by transferring risk to non-regulated systems.
Plus, he argued, why re-institute parts of the Glass-Steagall Act when none of the problems of the Great Recession were caused by the repeal of Glass-Steagall?
For any type of increased regulation to work, Cohen said, a small percentage of the funds that have been used to bail out banks should go toward increasing the compensation of regulators, so “they are not reduced to a difficult financial situation.”
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