The Volcker Alliance Issues Report to Overhaul US Regulatory System

April 20, 2024 by

Image credit: Tim Evanson

The Volcker Alliance has issued a report aimed at stirring change in the regulation of Wall Street and financial institutions.

Former Federal Reserve Chairman Paul Volcker, who led President Barack Obama’s Economic Recovery Advisory Board during the financial crisis, and was behind the eponymous Volcker rule, heads the group.

The group points out key shortcomings of the current financial regulatory situation in the US and proposes changes meant to instate greater oversight and consumer protections.

The Volker Alliance wants the Federal Reserve to continue maintaining the stability of the US economy.

However, Some of the oversight duties of the Fed would be passed on to a new regulatory body, the Prudential Supervisory Authority, which would also take on some of the responsibilities of the OCC, the FDIC, and the SEC.

The SEC and the CFTC would also be merged and would combine to oversee both the securities market, and the futures and options market.

These restructuring changes are meant to combat the key weaknesses of regulation in the United States, which are fragmentation and dated rules that lead to gaps and loopholes.

The report points out that while the past decades have brought some changes to financial regulation in the US, most of the systems in place have not changed much since the 1930s.

Related Articles