The Harvard Law School Forum on Corporate Governance https://corpgov.law.harvard.edu The leading online blog in the fields of corporate governance and financial regulation. Sun, 12 Jul 2026 11:30:45 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.8 https://corpgov.law.harvard.edu/wp-content/uploads/2024/02/cropped-photography-4-e1706898544564-1-32x32.png Implications of the “Volcker Rules” for Financial Stability – The Harvard Law School Forum on Corporate Governance https://corpgov.law.harvard.edu 32 32 Implications of the “Volcker Rules” for Financial Stability https://corpgov.law.harvard.edu/2010/02/05/implications-of-the-volcker-rules-for-financial-stability/?utm_source=rss&utm_medium=rss&utm_campaign=implications-of-the-volcker-rules-for-financial-stability https://corpgov.law.harvard.edu/2010/02/05/implications-of-the-volcker-rules-for-financial-stability/#comments Fri, 05 Feb 2010 14:05:18 +0000 http://blogs.law.harvard.edu/corpgov/?p=7326?d=20100205090518EST Editor’s Note: Hal Scott is the Director of the Program on International Financial Systems at Harvard Law School. This post is based on Professor Scott’s recent testimony before the Senate Committee on Banking, Housing And Urban Affairs, omitting footnotes. Professor Scott’s testimony is in his own capacity and does not purport to represent the views of the Committee on Capital Markets Regulation, of which he is the director. The full testimony of Professor Scott, including footnotes, is available here.

Let me preface my testimony by stressing the urgent need for broad regulatory reform in light of the financial crisis on matters ranging from the structure of our regulatory system, to the reduction of systemic risk in the derivatives market, to improving resolution procedures for insolvent financial companies, to increasing consumer protection, and to revamping the GSEs. The Committee on Capital Markets Regulation dealt with these issues in its May 2009 Report titled The Global Financial Crisis: A Plan for Regulatory Reform. These issues were also fully laid out in the Treasury Department’s June 2009 proposal on financial regulatory reform, and have been vigorously debated in public meetings, the press, and Congressional hearings for months. These efforts have so far culminated in the Wall Street Reform and Consumer Protection Act (H.R. 4173) as well as in Senator Dodd’s thoughtful Discussion Draft. And I applaud the ongoing efforts of this Committee to reach bipartisan consensus on these issues. In my judgment, we should not hold up these important reforms while we debate activity and size limitations.

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