Paul Volcker Paul Volcker, chairman of the Economic Recovery Advisory Board for President Barack Obama, is set to step down from the position next month. As a key adviser to the president, Volcker has advocated for tougher financial regulations and counseled the government on fiscal policy.

Volcker, who served as Federal Reserve chairman under Presidents Carter and Reagan, is often credited with combating high inflation during the 1980s. In the recent crisis, he became famous for promoting what became known as the Volcker Rule, which puts limits on proprietary trading by U.S. banks.

Volcker advocated barring lenders from committing their own funds to speculative investments, such as private-equity investments to mortgage-backed securities and other sophisticated bets. He believes that kind of speculative activity was partly responsible for causing the financial crisis. Wall Street banks largely disagreed, and opposed the Volcker Rule. In the end, a much softer version was included in the 2010 financial reform bill.

The President's Economic Recovery Advisory Board was created on Feb. 6, 2009, as a panel of non-government experts with a two-year mission to advise Obama on his plans to revive the U.S. economy. Obama is considering extending the board's mandate, but 83-year-old Volcker has chosen to bow out.

The Associated Press first broke the story, and other media outlets have been told the same by their sources. A formal announcement is expected Friday.

Volcker's departure follows the resignation by Lawrence Summers as Obama's chief economic adviser in September. Obama is likely to announce who will be taking over as director of the National Economic Council on Friday.

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CHABSENTIA

When will people learn that in many cases these people are not hired by the Administration to be Independent and free thinkers? They are sometimes appointed for their expertise and allowed a great deal of discretion. Not in the case of this administration. They are there only for window dressing. Larry Summers who was the Chief economic adviser for Obama had the same position with Clinton as did Christina Romer who resigned a few months ago as the head of the Economic Council for Obama. Compare the difference in Economics and Policies in that direction between Clinton and Obama. One of the main reasons that Volcker is leaving is because some Bankers were using depositor funds for investing in Real Estate and are still doing it. Volcker wanted to separate the practice into a separate entity not using depoitor funds etc so as to make it less risky. Obama disagreed so like the rest Volckeris leaving the building.

January 07 2011 at 10:25 AM Report abuse rate up rate down Reply
croone22

Zero in,zero out

January 06 2011 at 5:22 PM Report abuse rate up rate down Reply
jkennedy806

Another one bites the dust, except this one, is wise. He warned Washington and it happened. At 83 I don't blame him for taking a rest.

January 06 2011 at 11:49 AM Report abuse +3 rate up rate down Reply
David

Volker is a hero in many ways. His wisdom is needed now and I hate to see him leave.

January 06 2011 at 11:29 AM Report abuse +2 rate up rate down Reply
1 reply to David's comment
David

Err :-( that's Volcker....-10 sp)

January 06 2011 at 11:43 AM Report abuse rate up rate down Reply
Stop Darrell Issa

He did his job and we all should thank him for his service to the country. There is no longer a crisis why would he stay

January 06 2011 at 9:43 AM Report abuse -1 rate up rate down Reply
tcrcatlin

Bailing from a sinking ship?

January 06 2011 at 8:59 AM Report abuse +1 rate up rate down Reply