Volcker: 'My soul will come back to haunt you' if financial reform is not passed

Former Federal Reserve Chairman Paul Volcker told the U.S. Senate's Banking Committee on Feb. 2 that a failure to pass sweeping financial reform that limits the risk-taking activities of commercial banks will make another crisis inevitable.

"I may not live love long enough to see the crisis, but my soul will come back to haunt you," Volcker said in response to questions from Sen. Mike Johanns, R-Neb., who questioned the necessity of the proposed "Volcker Rule."

Volcker emphasized in his prepared remarks that the proposal to restrict commercial banks from some proprietary and speculative trading should be considered "as a part of the broader...