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Volcker’s return

More than anyone, Paul Volcker created the modern banking world. Now he may be about to revolutionise it again—but this time from the left

By Tom Streithorst   January 2010

Barack Obama spent most of 2009 bailing out banks and placating bankers. But last week, after the embarrassing Massachusetts defeat which saw the Democrats lose their crucial 60-seat senate majority, he finally responded to populist rage and proposed a range of radical policies long advocated by the 82-year-old former Federal Reserve Chairman, Paul Volcker. With Volcker by his side (and top economic Larry Summers and Tim Geithner relegated to the back of the room) Obama announced what he termed the “Volcker rule”: a move to restrict banks’ speculative (and high risk) trading. It is by no means a return to…

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