PAUL VOLCKER SPEAKS

Volcker Says Finance System `Broken,' Losses May Rise (Update1) By Doug Alexander and Steve Matthews Sept. 5 (Bloomberg) -- Former Federal Reserve Chairman Paul Volcker said the U.S. financial system, dependent upon securitization rather than traditional bank loans, is broken, and may contribute to the weakest expansion since the 1930s. ``This bright new system, this practice in the United States, this practice in the United Kingdom and elsewhere, has broken down,'' Volcker said today at a banking conference in Calgary. ``Growth in the economy in this decade will be the slowest of any decade since the Great Depression, right in the middle of all this financial innovation.'' FOR ENTIRE ARTICLE: http://www.bloomberg.com/apps/news?pid=20601087&sid=auKCKTSSU7yE