--- title: "Meaning & Key Takeaway of: would the Volcker amendment, had it been…" description: "\"“would the Volcker amendment, had it been law in 2007, have prevented the 2008 financial crisis? The financial crisis was caused by the overleveraging ..." image: "https://sms4smile.com/quotes/i/fe8/jeremy-j-siegel-23115_financial-crisis_would-the-volcker-amendment-had-it-been_1717702.jpg" --- # would the Volcker amendment, had it been law in 2007, have… ![“would the Volcker amendment, had it been law in 2007, have prevented the 2008 financial crisis? The financial crisis was caused by the overleveraging of real estate-related securities in Bear Stearns and Lehman Brothers, which were investment banks and would not have fallen under the purview of…” quote by Jeremy J. Siegel](https://sms4smile.com/quotes/i/fe8/jeremy-j-siegel-23115_financial-crisis_would-the-volcker-amendment-had-it-been_1717702.jpg) [Download](https://sms4smile.com/quotes/i/fe8/jeremy-j-siegel-23115_financial-crisis_would-the-volcker-amendment-had-it-been_1717702.jpg) [Open image](https://sms4smile.com/quotes/i/fe8/jeremy-j-siegel-23115_financial-crisis_would-the-volcker-amendment-had-it-been_1717702.jpg) > ““would the Volcker amendment, had it been law in 2007, have prevented the 2008 financial crisis? The financial crisis was caused by the overleveraging of real estate-related securities in Bear Stearns and Lehman Brothers, which were investment banks and would not have fallen under the purview of the Volcker amendment. Nor would it have applied to the insurance giant AIG, which the Fed chose to save after seeing the turmoil unleashed by the Lehman bankruptcy. Furthermore, banks that obtained loans from the Fed, specifically Citibank and Bank of America, ran into trouble because of bad real estate loans, not proprietary trading. Given this history, it is dubious that the Volcker amendment, had it been in effect in 2007, would have changed the course of the financial crisis.”” [Jeremy J. Siegel](https://sms4smile.com/quotes/author/jeremy-j-siegel/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. The Volcker amendment would not have stopped the 2008 crisis because its scope missed key institutions and risky assets that drove the collapse. **In simple terms:** Volcker rule missed the main causes of the crisis. Key Takeaway Recognize limits of regulatory fixes. Themes regulation financial crisis policy risk management banking Mood analytical critical inquisitive Type policy analysis economic commentary financial insight When to use this quote - policy design - legislative drafting - risk assessment - financial oversight - crisis prevention Key Concepts systemic risk regulatory scope financial stability Questions to Reflect On - Could broader regulation have a more impact? - What other factors contributed to the crisis? A Different Perspective The amendment’s narrow focus limited its effectiveness against broader market excesses. ★ ★ ★ ★ ★ No ratings yet [Bank Of America](https://sms4smile.com/quotes/about/bank-of-america/) [Customer](https://sms4smile.com/quotes/about/customer/) [Financial crisis](https://sms4smile.com/quotes/about/financial-crisis/) [Lehman brothers](https://sms4smile.com/quotes/about/lehman-brothers/) [Money](https://sms4smile.com/quotes/about/money/) [Real estate](https://sms4smile.com/quotes/about/real-estate/) ## Related quotes > [Hey, guess what? Turns out the free market? Not so free. 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The financial crisis was caused by the overleveraging of real estate-related securities in Bear Stearns and Lehman Brothers, which were investment banks and would not have fallen under the purview of the Volcker amendment. Nor would it have applied to the insurance giant AIG, which the Fed chose to save after seeing the turmoil unleashed by the Lehman bankruptcy. Furthermore, banks that obtained loans from the Fed, specifically Citibank and Bank of America, ran into trouble because of bad real estate loans, not proprietary trading. Given this history, it is dubious that the Volcker amendment, had it been in effect in 2007, would have changed the course of the financial crisis.”", "creator": { "@type": "Person", "name": "Jeremy J. 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