Lord Adair Turner

Simone Baribeau

If Lord Adair Turner has received heat for his sometimes controversial comments, today he could take comfort in an “atta-boy.”

The chairman of the Financial Services authority, much maligned for his comments on “socially-useless” bank trading practices last year, received nothing but praise from Paul Volcker, former Federal Reserve chairman.

The architect of the so-called ‘Volcker rule’ called Lord Turner “extremely sophisticated” and “thoughtful” and urged participants at a Peterson Institute for International Economic to read his “very closely reasoned” speech on financial reform. He praised the analysis, which was highly skeptical of the benefits of financial services.

He later referred a question on potential downside to the Volcker rule – which would ban proprietary trading at commercial banks – to Lord Turner’s analysis. “He says some liquidity’s good, but at some point let’s stop its growth.” Mr Volcker then concluded that there would be no negative impacts from the ban.

Other highlights from Mr Volcker’s talk: