Volcker Predicts Adoption of Banking Pact: Outgoing Fed Chairman ...
Federal Reserve Board Chairman Paul A. Volcker yesterday predicted that a major international banking agreement among the leading industrial countries would be signed by the end of the year.</br></br>ÛÏI think it will be done,Û said Volcker in his farewell appearance before the House Banking Committee. Tm sorry I won't be here to see it.Û</br></br>Such an agreement ÛÏwould be a big step forwardÛ toward reducing competitive pressure between banking systems, Volcker said. Foreign banks now often have lower capital requirements than U.S. banks, enabling them to offer better rates to borrowers.</br></br>Appearing relaxed and jovial, Volcker listened to a slew of tributes from the unusually large number of members of the subcommittee on financial institutions supervision, regulation and insurance who showed up for what was billed as a hearing on globalization of financial markets.</br></br>D.C. Del. Walter Fauntroy declared, ÛÏWhen the history of the fourth quarter of the 20th century is written, your name will be [remembered as] one who made the most important contribution to the economic recovery of this nation and the economic stability of the world.Û And committee chairman Fernand St Germain (D-R.I.) closed the session with an emotional ÛÏthank youÛ to Volcker.