Investment Bank Power and Neoliberal Regulation: From the Volcker Shock 
to the Volcker Rule.
by Sandy Brian Hager
In Neoliberalism in Crisis, edited by H. Overbeek and B. van Apeldoorn, 
Basingstoke, UK: Palgrave Macmillan, pp. 68-92.

ABSTRACT: The power of investment banks has played a pivotal role in the 
monopoly capital school’s analyses of US capitalist development. However 
this paper suggests that monopoly capital’s explanation of the changing 
nature of this power is severely limited. These limitations can be 
traced to the school’s logically circular and empirically inoperable 
theory of capital accumulation. The paper goes on to offer an 
alternative theoretical-empirical account of the power of investment 
banks since the early 1980s. Based on the notion of capital as power, 
the research suggests, contrary to the monopoly capital account, that 
investment banks have experienced a rapid resurgence in their power over 
this period. This resurgence must be understood with reference to the 
unique ways that investment banks have maneuvered within neoliberal 
regulation.

FULL TEXT: http://bnarchives.yorku.ca/330/

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Jonathan Nitzan
Political Science | Social and Political Thought
York University
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