One of America’s top economic minds is being ignored.
Paul Volcker’s desire to break up large banks and roll back the U.S. financial system to the days of Glass-Steagall looks increasingly dead in the water.
It should come as no surprise. Breaking up large banks obviously hurts the big boys, who still weild enormous clout.
NYT: His disagreement with the Obama people on whether to restore some version of Glass-Steagall appears to have contributed to published reports that his influence in the administration is fading and that he is rarely if ever in the small Washington office assigned to him.
He operates from his own offices in New York, communicating with administration officials and other members of the advisory board mainly by telephone. (He does not use e-mail, although his support staff does.) He travels infrequently to Washington, he says, and when he does, the visits are too short to bother with the office. The advisory board has been asked to study, amid other issues, the tax law on corporate profits earned overseas, hardly a headline concern.
So Mr. Volcker scoffs at the reports that he is losing clout. “I did not have influence to start with,” he said.