Volcker says his namesake rule reduces conflicts of interest
Federal Reserve Chairman Paul Volcker told a Senate banking
subcommittee that it is unlikely that banks will be able to handle the
potential customer conflicts presented by trading activities. "The risk
of failure of 'large, interconnected firms' must be reduced, whether by
reducing their size, curtailing their interconnections, or limiting
their activities," Volcker said. He said the Volcker rule is a good
start toward that end.