Volcker Wants Second Vice Chair at Fed
The latest Senate proposal to overhaul financial regulation includes a provision to make a second vice chairman of the Federal Reserve Board in Washington who would be frankly responsible for bank supervision.
It’s an unusual proposal that received small attention before draft Senate legislation was unveiled Monday. But it has a strong proponent: Former Federal Reserve Chairman Paul Volcker, who is an economic adviser to President Barack Obama.
Testifying before a House committee, Mr. Volcker said he’s been an advocate of designating one of the Fed governors as a vice chair for supervision to elevate the substance of the role.
“I reckon you need that continuing focus and apparent sense of responsibility so that the attention that the Federal Reserve pays is less theme to maybe ups and downs over time,” Mr. Volcker told the House Financial Services Committee. “Let’s build it into the organization in a way that maybe it hasn’t been built in as conclusively as it should have been in the past.”