Updated to include statements from testimony.
NEW YORK (TheStreet) - If Paul Volcker has his way, at least three crisis-era deals would be rendered a waste of time and money.
Volcker, a former Federal Reserve chairman who now leads the president's economic advisory board, is advocating for the separation of commercial and investment banking. Under his plan, large, diverse banks like Bank of America (BAC), JPMorgan Chase (JPM), Citigroup (C) and Wells Fargo (WFC), would need to get rid of any businesses that engage in market activities for profit, or provide services for private entities that do, such as hedge funds and private equity funds.
"[A]dding further layers of risk to the inherent risks of essential commercial bank functions doesn't make sense, not when those risks arise from more speculative activities far better suited for other areas of the financial markets," Volcker says in a recent New York Times op-ed.
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