03/18/2010 05:12 am ET Updated May 25, 2011

Paul Volcker: Regulatory Reform 'In The Spirit of Glass-Steagall' Needed To Fix 'Broken' System

ROSE: So does this mean we should restore Glass-Steagall?

VOLCKER: No. That's a false statement people make about my position. Glass-Steagall basically said banks cannot underwrite corporate securities or deal with corporate securities. But I would let commercial banks do underwriting of corporate customers. So you could argue that what I propose is somewhat in the spirit of Glass-Steagall in making a distinction between capital-market activities and trading activities and banking activities. But it is not specifically going back to Glass-Steagall.

ROSE: Do you think that Congress will see it your way?

VOLCKER: Eventually, yes. They need a little more persuasion.

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