9
Journal
PAUL VOLCKER,
NAMESAKE OF
'VOLCKER RULE,'
DIES AT 92
Paul Volcker, the former Chairman of
the Federal Reserve who helped subdue
inflation in the late 1970s and 1980s died on
December 8 in New York. He was 92.
e New York Times reported that his
death was confirmed by his daughter Janice
Zima. Paul Volcker was diagnosed with
prostate cancer in 2018.
He served as a senior Fed official from
1975 to 1987 and sought to limit the easing of
financial regulation and warned the growth of
federal debt threatens the nation's economic
health.
"Paul was as stubborn as he was tall," said
President Jimmy Carter said in a statement,
"and although some of his policies as Fed
chairman were politically costly, they were the
right thing to do. His strong and intelligent
guidance helped to curb petroleum-driven
inflation, easing a strain on all Americans'
budgets."
Volcker's last official post was a chairman
of President Barack Obama's Economic
Recovery Advisory Board, which was formed
in response to the 2008 financial crisis.
He persuaded lawmakers to impose new
restrictions on big banks—known as the
"Volcker Rule."
"He came to represent independence,"
said former Fed Chairman Ben Bernanke
in an interview with e New York Times.
"He personified the idea of doing something
politically unpopular but economically
necessary."
e Securities and Exchange Commission
finalized revisions in October to finalize
revisions to simplify compliance requirements
relating to the "Volcker rule."
e Volcker rule generally prohibits
banking entities from engaging in proprietary
trading or investing in or sponsoring hedge
funds or private equity funds.
e revised rule states that firms that do
not have significant trading activities will
have simplified and streamlined compliance
requirements, while firms with significant
trading activity will have more stringent
compliance requirements.
e changes were developed by the
Federal Reserve Board, the Commodity
Futures Trading Commission, the Federal
Deposit Insurance Corporation, the Office
of the Comptroller of the Currency, and the
Securities and Exchange Commission.
"He came to
represent
independence.
He personified
the idea
of doing
something
politically
unpopular but
economically
necessary."
—former Fed Chairman
Ben Bernanke
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