Mr Volcker, frozen out of Obama's inner circle of economic advisors by Larry Summers, ex President of Harvard, spoke at Harvard the other day. He urged students to forgo "making a million dollars" doing financial engineerin. Instead, they should do something "real". Larry Summers collected over $5 million for doing part time consulting for a hedge fund. About what I wonder? Did the fund sell short before the deluge? I doubt. Otherwise DE Shaw funds figures would have shown sterling performance during the bust.
Do you think Volcker might have succeeded in changing minds when their ex president was raking it in selling financial "wisdom" even if it didn't pan out? Harvard's own endowment tanked due to a lot of derivatives which Larry Summers approved of during his reign. Just asking.
Read the report here.