Volcker Speaks Out On Financial Innovation (video)
January 26, 2010
In this WSJ video, economic adviser Paul Volcker gives his views on financial innovation: "I hear about wonderful innovation in the financial markets. But I'll tell you too, credit default swaps and CDO's took us right to the brink of disaster. Were they wonderful innovations we want to create more of? You want boards of directors to be informed about all these innovative products, and understand them. I don't know what boards of directors you're talking about. I have been on boards of directors. The chances that they're going to understand these products that you're dishing out, or you're going to want to explain them, frankly, is nil. Wake up, gentlemen.""I have been on boards of directors. The chances that they're going to understand these products that you're dishing out, or you're going to want to explain them, frankly, is nil. Wake up, gentlemen."
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