You couldn't blame Paul Volcker for feeling ill-used. He was one of the first of the financial Brahmins to endorse Barack Obama, back when Hillary Clinton was a sure thing for the nomination. Volcker was an earlier adviser to Obama than Larry Summers, Tim Geithner, Bob Rubin, or the rest of the Wall Street gang. Then, after Obama became the Democratic nominee, Volcker was trotted out as a senior advisor and his prestigious name was dropped for a top administration post.

But then the dust settled, Volcker was given a largely ceremonial position as head of an advisory committee that didn't even meet until May, and his advice was largely ignored. Volcker's wise counsel was for much tougher regulation, including the restoration of the Glass-Steagall wall between commercial regulation...