Description: Large financial institutions that engage in speculative activities for profit should be allowed to fail if they get in trouble, White House advisor Paul Volcker said on Sunday.

Source: Reuters.com

Date: 02/014/2010

Link:  http://www.reuters.com/article/idUSN1414676420100214?type=marketsNews

Questions for discussion: 

• Do you agree with Paul Volcker’s argument? Explain your answer.
• What would the impact be on risk management at large firms if this sort of thinking were to grow more popular among government and regulatory agencies?