Christopher Whalen is not shying away from taking Washington D.C. and Wall Street to task in his latest commentary for Breitbart.com.
The banking veteran says:
“A number of financial observers and members of Congress have stated that a new financial crisis is ‘inevitable,’ this despite the vast body of new laws and regulations put in place since the 2008 financial crisis. Most of these observers blame a lack of effective regulation for making a new crisis unavoidable, but my view is the opposite; that new regulations are actually creating the circumstances for future financial contagion.”Sponsor Content
Whalen’s commentary asserts excessive regulation as enacted by Dodd-Frank and policymakers will choke the recovery:
“The implementation of Dodd-Frank is largely contrary to making markets safer, especially provisions like the Volcker Rule. The Volcker Rule actually reduces financial market liquidity. Principal trading by banks had nothing to do with the causes of the 2008 subprime crisis. Just look at the bond market chaos this past June if you want to see the true impact of the Volcker Rule.”