Obama's economic advisor to address Global Financial Markets Forum in Abu Dhabi

Abu Dhabi, Feb 7, 2012 (WAM) - The 2012 Global Financial Markets Forum (GFMF) will kick start on February 29 with a keynote address by Paul Volcker, the Former Chairman of the US Federal Reserve System and economic advisor to President Barack Obama. GFMF, the annual conference organised by the Financial Markets Division of the National Bank of Abu Dhabi (NBAD) will last until 1 March. Volcker's keynote address will be titled: "The Future of Global Financial Markets and the Impact of the Volcker Rule". In his capacity as advisor to President Barack Obama, Volcker proposed a set of financial reform rules that included restricting commercial banks from proprietary trading, which he called "speculative trading" because it adds an unnecessary layer of risk. In a recent conversation with GFMF's organisers, Volcker said about the scope of these regulations: "The impact beyond the USA will be minimal, and to the extent it exists is likely to be constructive". "Proprietary trading indirectly leads to conflicts of interest with bank customers, patterns of compensation and organisational culture out of keeping with traditional banking," Volcker added: "Commercial banks provide services essential to the economy - maintaining its payments system, lending particularly to small and medium-sized businesses, and providing a safe depositary for liquid funds". Mahmood Al Aradi, the Senior General Manager of NBAD's Financial Markets Division, said that Volcker is an ideal choice to speak about markets' recent and future challenges. "Certainly, Mr. Volcker insights into market factors, economic models and philosophy on recovery would be invaluable." said Al Aradi. Volcker served in the Federal Government for nearly three decades and under five presidents: John F. Kennedy, Lyndon B. Johnson, Richard M. Nixon, Jimmy Carter and Ronald Reagan. In 1979, Volcker was nominated by President Jimmy Carter to fill the most powerful economic seat in government--chairman of the Federal Reserve Board. As chairman, he also had oversight of the 12-member Federal Open Market Committee (FOMC), which decides the conduct of U.S. monetary policy. - Emirates News Agency, WAM