Volcker was chair of the Federal Reserve from 1979 - 1987 and is credited with bringing down high rates of inflation during that time.
In this Daily Beast interview he discusses the transformation of the banking sector and the increased difficulty of regulating the financial sector in a dynamic environment.
A choice bit: :
- I am struck by the number of not just friends but other observers who share the belief that there has been a real change in the mental approach of people in markets. They used to be more customer-oriented, with some sense of fiduciary responsibility that’s been very much reduced into an impersonal, “you’re a counterparty, you’re not a customer” caveat emptor.
That attitude lies behind a lot of these difficulties and has been spurred by enormous changes in compensation practices that have tempted people to cut corners. I’m afraid that the temptation now becomes greater—that if I can, as they say, cut some corners, maybe I’ll get some of this magic dust myself in proportions that seemed unimaginable a few years ago.
