There would be no better use of President Donald Trump’s deregulatory zeal than to engineer a wholesale redesign of the crazy quilt of federal agencies that regulate Wall Street and the financial sector, former Fed Chairman Paul Volcker said Wednesday.
While everyone complains about the fragmented structure of regulatory agencies, there is enormous resistance to change, Volcker said in a speech to the Bretton Woods Committee meeting in Washington.
So far, some 50 efforts have been made since World War II to streamline the agencies but all have failed, he noted.
“My point here is to encourage the Congress and the new administration to launch together a serious study of how to deal with the shortcomings of a system which has simply outlived its rationale and its usefulness,” Volcker said.
“That indeed is a project worthy of a new administration interested not only in tweaking of oversight and regulatory procedures but rather in simplifying an archaic and unduly complicated regulatory system, a structure that is itself acting as an impediment to efficient and stable markets,” he said.