'Financial system is broken': Volcker

Speaking to a group of bankers in Chicago on Sept. 23, former Federal Reserve Chairman Paul Volcker had harsh words for the current financial system.

Held at the Federal Reserve Bank of Chicago, the conference was convened to look at ways countries could work together to better fend off future financial crisis. Volcker was clear in his critique: More regulation is needed both in the U.S. and internationally.

To this point, he cited the ability of the financial community to seemingly outpace the agencies charged with policing it, developing complicated financial products that few understood well enough to price, let along regulate.

However, one area where Volcker does not see a problem is deflation. Answering questions after his speech, the man once charged with keeping U.S. inflation in check said he foresaw a period of price stability in the country.

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