Volcker Criticizes Obama Plan on ‘Systemically Important’ Firms

http://bloomberg.com/apps/news?pid=20601070&sid=aKPBxT0cjj5E
Sept. 24 (Bloomberg) -- Former Federal Reserve Chairman Paul Volcker criticized the Obama administration's plan to subject "systemically important" financial firms to more stringent regulation by the Fed.

Volcker told lawmakers today that such a designation would imply government readiness to support the firms in a crisis, encouraging even more risky behavior in a phenomenon known as "moral hazard."