Treasury Secretaries Back Volcker Rule

Fight disinformation: Sign up for the free Mother Jones Daily newsletter and follow the news that matters.


Five former Treasury Secretaries, from Democratic and Republican administrations alike, voiced their support for the “Volcker Rule” on Sunday in a joint letter to the Wall Street Journal. The secretaries—Michael Blumenthal, Paul O’Neill, George Shultz, Nicholas Brady, and John Snow—said the rule, which would separate banks’ riskier trading operations like hedge funds from their more staid commercial banking duties—wrote that “Banks benefiting from public support by means of access to the Federal Reserve and FDIC insurance should not engage in essentially speculative activity unrelated to essential bank services.”

The former secretaries’ support adds momentum behind the proposed regulation, offered by former Federal Reserve chairman and Obama ally Paul Volcker, going into a week when the Senate, led by banking committee chair Sen. Chris Dodd (D-CT), plans to unveil its version of comprehensive financial reform. (The House’s version of financial reform, passed in December, gives the Treasury and the president the power to divest assets from banks if necessary.) Broadly speaking, the Volcker Rule is supported by Congressional Democrats involved in financial reform as well as many finance experts. Despite the massive amounts of speculation that fueled the economic meltdown, large financial institutions generally say they’re more than capable of policing their own risky trading operations, and don’t see the need to split those hedge funds and private equity funds from their rest of their company. We’ll see sometime this week whether Dodd and Sen. Bob Corker (R-TN), Dodd’s latest partner in financial-reform talks, decide to include the Volcker Rule in their plans.

 

LET’S TALK ABOUT OPTIMISM FOR A CHANGE

Democracy and journalism are in crisis mode—and have been for a while. So how about doing something different?

Mother Jones did. We just merged with the Center for Investigative Reporting, bringing the radio show Reveal, the documentary film team CIR Studios, and Mother Jones together as one bigger, bolder investigative journalism nonprofit.

And this is the first time we’re asking you to support the new organization we’re building. In “Less Dreading, More Doing,” we lay it all out for you: why we merged, how we’re stronger together, why we’re optimistic about the work ahead, and why we need to raise the First $500,000 in online donations by June 22.

It won’t be easy. There are many exciting new things to share with you, but spoiler: Wiggle room in our budget is not among them. We can’t afford missing these goals. We need this to be a big one. Falling flat would be utterly devastating right now.

A First $500,000 donation of $500, $50, or $5 would mean the world to us—a signal that you believe in the power of independent investigative reporting like we do. And whether you can pitch in or not, we have a free Strengthen Journalism sticker for you so you can help us spread the word and make the most of this huge moment.

payment methods

LET’S TALK ABOUT OPTIMISM FOR A CHANGE

Democracy and journalism are in crisis mode—and have been for a while. So how about doing something different?

Mother Jones did. We just merged with the Center for Investigative Reporting, bringing the radio show Reveal, the documentary film team CIR Studios, and Mother Jones together as one bigger, bolder investigative journalism nonprofit.

And this is the first time we’re asking you to support the new organization we’re building. In “Less Dreading, More Doing,” we lay it all out for you: why we merged, how we’re stronger together, why we’re optimistic about the work ahead, and why we need to raise the First $500,000 in online donations by June 22.

It won’t be easy. There are many exciting new things to share with you, but spoiler: Wiggle room in our budget is not among them. We can’t afford missing these goals. We need this to be a big one. Falling flat would be utterly devastating right now.

A First $500,000 donation of $500, $50, or $5 would mean the world to us—a signal that you believe in the power of independent investigative reporting like we do. And whether you can pitch in or not, we have a free Strengthen Journalism sticker for you so you can help us spread the word and make the most of this huge moment.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate