so paul volcker writes a memo to the president says, we should stop that. and then congress gets it and they say we should. that three-page memo turns into a 300-page bill the summary of which is 41 pages to the point where paul volcker says, uh, i don't like this anymore. is that why people don't like zmong because what happened is the simple clear rule that would have been easily regulated is attacked by lobbyists, bankers, special interests and turned into oatmeal. >> well, that's one way of looking at it. the fact is the volcker rule is a very good idea as originally proposed and how that translates to legislative language. that say responsibility we have. it has to turn into legislative -- it didn't add provisions it translated. you know what, that is so insider what is important. >> stephen: what you call insider we call the business of congress. it's not just putting it in legislative language it's people finding what they call exceptions, what we would call loopholes. you how does that get in there to change what is a pretty clean rule? >> even paul

. >> is the white house satisfied with the way the volcker role, as is proposed, are you in support of the regulatory proposal that is in front of the people? >> we obviously, in doing financial reform, we were very active in the legislation. obviously, we do not control all of the regulations put out by independent regulators because they are independent. that said, i think we looked at the ball rolled off, as he noted later, it was released 35 -- the volcker rule, as he noted later, it was really 35 pages. the rest was commentary. and i think the basic t, the basic purpose, the basic goals are in place. >> are you satisfied with the occupied wall street movement? do you have any comments on that movement? >> i think the frustration those people face, i think they see what was historic effort to stabilize our financial system. they, like us, are still unsatisfied with the state of the economy and feel a sense of unfairness in how the economy has rewarded the different segments of the public, not just in the past couple of years, but in the last 10 or 12 years. i think we understand th

the last one i am a, when i was vice chairman of the fed, and i had many meetings with paul volcker, because at the time he was chairman, i was vice chairman, paul volcker used to tell me on his monitor national monetary claims, if you remember the first part of the reagan administration before the policies really were enacted into law, the economy was in a deep recession. 1982 was probably the depths of the largest postwar recession since the one we're in now. unemployment rate was hovering near 10%. the monetary policy was still very tight. to break the back of inflation which as ed meese has pointed out was near 12%, an annual rate. you can't imagine what that was like now. you probably do if you're around them. some of the and people can probably imagine what that was like economically at the time. with interest rates hovering near 20%. economy was in terrible shape, and volcker would say to me, you know, it's very lonely over here at the fed, because i'm used to to the central banking as an independent institution. politicians are always trying to manipulate the federal reserve

i am sure larry summers probably has different ideas and paul volcker, i feel sorry for paul volcker look what he did under ronald reagan with the tough decisions and what he advocated and warren buffett sold his soul and he is saying they got it wrong but they didn't, he does not want to seal like -- seem like a robber baron. and he found a way . >>neil: if you had to advise him now what would you do? >>guest: he can get through repatriation of corporate profits. quickly. >>neil: cutting the taxes. >>guest: bring $1 trillion back. $500 million could go to buy backs but $500 billion would go to direct job creation and no one watch this show would have to pay a nickel for. and cut corporate taxes, a real tax cut for everyone who makes money not just, stop being so selective in trying to help have thirled versus that american, and bring us together as a country. there is still time to do it. i'm not hopeful but there is time. >>neil: okay, all right, charles payne, thank you very much. in the meantime, he bet big on a government bailout and now, well, he is out. and veggie nutrition...

. >> people said the volcker rule was a bad idea win suggest to you if that was your pension fund, maybe the volcker rule wouldn't be such a bad idea at this point in time. >> well, we're all learning in public, that's for sure, and i have to take that as encouraging, actually, because the more we're aware of these issues, these things can be resolved. they've been resolved in the past. you just can't resolve them if you don't talk about them. thank you for having the conversation with me. the panel stays. our specialist joins the conversation and answers the question, now, this ink about t last two conversations we've had here. so, you know, it's a little bit of a thing there. but what would our foundingç fathers think of america today? an author who believes he is channeling james madison joins us after this. is this a chevy volt? [ stu ] yeah. it's electric. i don't think so. it's got a gas tank right here. electric tank, right over here. an electric tank? really, stu? is that what you pour the electricity in? it's actually both, guys. i can plug in and go 35 miles gas free, or i ca

paul volcker even saying, listen, that volcker rule, that shouldn't have my name on it. do you get any sense that there's even a kabul on either party that's saying, listen, as i know that there are people that are in our government who understand what we're talking about. >> yeah. you know, more of what you're hearing, i think, at this point, because the problem is so acute. i mean, i take jimmy's point, it's incestuous, but look at what happened last week. an agreement was reached, the market went up. part of the reason why we've had quite a bit of uncertainty over the past several weeks was whether or not they could reach a deal. obviously part of the key message here at the g-20 is to get this resolved. so most of them, from the political context, i think the concern is, we've got to get this straightened out and get on sound footing, at least with regard to this issue, and then we can go back and sort of make those arguments. but i think there's a real sensitivity to how sensitive, frankly, the markets have been reacting reacting to these various decisions. i was fr

other people who were not elected, paul volcker did it, but he was at the fed, he didn't have to run for reelection. but ronald reagan tolerated the volcker crackdown on inflation. >> rose: and sported it. >> and supported him. so that stuk. it takes a certain sort of person willing to do things that really stink. >> rose: what about romney? what about the way he's campaignd? what about what you know about him gives you some sense that he deserves a serious look by america. >> first i was not thrilled at all with his cpaign four years ago and i say that because i had the same take everyone had. it was artificial. it was phony. when you see him at a business group it was good, when you'd see him at a conservative group he was terrible. artificial. he gave a convention speech at the convention which was among the worst speeches in american history which is say something. so i'msort of impressed by this. he took an honest look at his own campaign, took full ownership of the failure and did a correction and he's emerged... i've never in my life covering politics seen a candidate impre as

when i was the vice-chairman of the fed, and i had many meetings with paul volcker because of the time he was the chairman i was the vice chairmen he used to tell me on his if you remember the first part of the ronald reagan administration before the policies were enacted into law the economy was in a deep recession. 1982 was probably the debt of the largest postwar recession since the one that we are in now. the unemployment was around 10% ha. adel on the true policy to break the back of inflation, which has ed meese pointed out was near 10% of the annual rate. you can't imagine what that was like now. you probably do if you were around then to read some of the younger people can probably imagine with the was like economically at the time with interest rates hovering at 20%. the economy was in terrible shape and paul volcker would say to me it's lonely over here at the fed because i used to the central banking as an independent institution politicians are always trying to manipulate the federal reserve board to savor their policies since usually the pressure is to stimulate monterey p

but to the volcker rule which calls for separation of moneys used in firms for trading and individual accounts, if indeed this allegation is true, which we don't know with the "new york times" states this morning naturally it spells some other questions, related to other questions the firm has to answer but it probably fuels the conversation in washington around support for the volcker rule. >> we'll get to more europe news in a minute but first michael steele you have a thought. jump in. >> i think this plays to the whole problem that people have right now with big money interests not just here in the united states but dwloeglobally. here you have this firm that bet against the idea of what the trend lines were saying. the economies of europe and the united states were on a very rocky shore. was not a time to make those types of bets. and they did. they came up short big time. now you'll have this ripple effect you were just talking about that is going to redouble people's effort if you will to crack down on profligate spending, wild hedges into the future and a more conservative app

. >> as i said, no -- we have these laws, dodd-frank, a volcker rule that's supposed to be implemented. but in fact, no one has apparently learned anything. for jon corzine not to have learned the critical lesson of 2008 -- >> but he wasn't there. it's like he didn't have a seat at the table in 2008 so he's reliving it. >> our rules are not yet sufficient it appears. leigh, bill, thanks to both of you. we appreciate it. >>> in a letter today, the u.s. department of justice asked alabama school districts to prove they are following the law when it comes to giving children equal access, regardless of immigration. nate valencia is following this. this comes on the back of the heels of basically schools being asked to verify whether children were legal or illegal. what information is the doj asking the state for? >> that's right, erin. this is just the latest clash between the federal government and states that have designed laws to step up enforcement against illegal immigration. on tuesday, civil rights division for the department of justice issuing a letter to the state of alabama schoo

. >> reporter: the volcker rule will or will not be enacted as defined by the regulatory authorities now? >> the question is what the 10 regulations underneath it do. >> rose: that's what they're doing now. the consumer protection agency. >> same thing. >> rose: in other words it will be so ameliorated it will have none of the teeth that people who created the law... >> rose: intended it to happen. >> and this is the way our system works. on the surface you have decisions that make it sound like you're responding. >> rose: that's true in health care, that's true in financial regulation. it's true... >> it's the general form of how our governmentorks now. >> rose: stay with me, this is at the heart of your book. that's not... that's not a democracy in your judgment because a few are making the decisions because of the power of their money and influence. >> right. so our framers gave us what they called a republic and what they meant by a republic was a representive democracy. and what federalist 52 says is that a representative democracy would be a government "dependent upon the peopl

. >> as i said, no -- we have these laws, dodd/frank, a volcker rule that's supposed to be implemented. but in fact, no one has apparently learned anything. for jon corzine not to have learned the critical lesson of 2008 -- >> but he wasn't there. it's like he didn't have a seat at the table in 2008 so he's reliving it. >> our rules are not yet sufficient it appears. leigh, bill, thanks to both of you. we appreciate it. >>> in a letter today, the u.s. department of justice asked alabama school districts to prove they are following the law when it comes to giving children equal access, regardless of immigration. nate valencia is following this. this comes on the back of the heels of basically schools being asked to verify whether children were legal or illegal. what information is the doj asking the state for? >> that's right, erin. this is just the latest flash between the federal government and states that have designed laws to step up enforcement against illegal immigration. on tuesday, civil rights division for the department of justice issuing a letter to the state of alabama schoo

. >> reporter: the volcker rule will or will not be enacted as defined by the regulatory authorities now? >> the question is what the 10 regulations underneath it do. >> rose: that's what they're doing now. the consumer protection agency. >> same thing. >> rose: in other words it will be so ameorated it will hav none of the teeth that people who created the law... >> rose: intended it to happen. >> and this is the way our system works. on the surface you have decisions that make it sound like you're responding. >> rose: that's true in health care, that's true in financial regulation. it's true... >> it's the general form of how our governmentorks now. >> rose: stay with me, this is at the heart of your book. that's not... that's not a democracy in your judgment because a few are making the decisions because of the power of their money and influence. >> right. so our framers gave us what they called a republic and what they meant by a republic was a representive democracy. and what federalist 52 says is that a representative democracy would be a government "dependent upon the people a

. >> reporter: the volcker rule will or will not be enacted as defined by the regulatory authorities now? >> the question is whathe 10 regulations underneath it do. >> rose: that's what they're doing now. the consumer protection agency. >> same thing. >> rose: in other words it will be so ameliorated it will have none of the teeth that people who created the law... >> rose: intended it to happen. >> and this is the way our system works. on the surface you have decisions that make it sound like you're responding. >> rose: that's true in health care, that's true in financial regulation. it's true... >> it's the general form of how our governmentorks now. >> rose: stay with me, this is at the heart of your book. that's not... that's not a democracy in your judgment because a few are making the decisions because of the power of their money and influence. >> right. so our framers gave us what they called a republic and what they meant by a republic was a representive democracy. and what federalist 52 says is that a representative democracy would be a government "dependent upon the people

it's really unclear and that's going to spark doubt about the volcker rule. it appears the firm is getting paid back for some of their trades so that sum is dwindling. it's just a matter of whether they can get that down to zero. >> kayla tausche, thank you. >>> the debt supercommittee is holding a rare public hearing. is the group splinter with that deadline looming? that's next. y vision. my eye doctor said there's great news for people with astigmatism. acuvue® oasys for astigmatism. he said it's the only lens of its kind designed to realign naturally with every blink and created with hydraclear® plus. i'm seeing more clearly, crisply, comfortably, all day long. now life doesn't have to be a blur. [ male announcer ] learn more at acuvue.com. acuvue® oasys for astigmatism. but my nose is still runny. [ male announcer ] truth is, dayquil doesn't treat that. really? [ male announcer ] alka-seltzer plus fights your worst cold symptoms, plus it relieves your runny nose. [ deep breath] awesome. [ male announcer ] yes, it is. that's the cold truth! ♪ [ gong

. >> as i said, no -- we have these laws, dodd-frank, a volcker rule that's supposed to be implemented. but in fact, no one has apparently learned anything. for jon corzine not to have learned the critical lesson of 2008 -- >> but he wasn't there. it's like he didn't have a seat at the table in 2008 so he's reliving it. >> our rules are not yet sufficient it appears. leigh, bill, thanks to both of you. we appreciate it. >>> in a letter today, the u.s. department of justice asked alabama school districts to prove they are following the law when it comes to giving children equal access, regardless of immigration. nate valencia is following this. this comes on the back of the heels of basically schools being asked to verify whether children were legal or illegal. what information is the doj asking the state for? >> that's right, erin. this is just the latest clash between the federal government and states that have designed laws to step up enforcement against illegal immigration. on tuesday, civil rights division for the department of justice issuing a letter to the state of alabama schoo

he gathers around him in the fall of 07 and the spring of 08 and ecumenical team led by paul volcker, democrats and republicans, bill donaldson, that fec cheese and the bush, robert rice, one of your favorites here. they're all together. the ubs wall street tighten. there together because they are afraid. people are feeling the shutters on the landscape, feeling it shake. and obama, right from the start, is saying that -- sang the things that almost no one else is saying. many to reform financial capital, reform the system of credit. the american economy rather than in some it was against it. to kill off the volatility that we feel even now as we run up and down these problems of fear. really his guide. almost two years. he is the kind of avatar, the kind of champion of tough love, you know, after greenspan's demise of the most part, having pushed for the bubble across 20 years, one bubble to the next .. he returns to stand behind obama, credibility. this is sized up by the summer of 2008 as trouble, trouble for another team, called a team b and that's the team lead for the most part

. >> is the white house satisfied with the way the volcker role, as is proposed, are you in support of the regulatory proposal that is in front of the people? >> we obviously, in doing financial reform, we were very active in the legislation. obviously, we do not control all of the regulations put out by independent regulators because they are independent. that said, i think we looked at the ball rolled off, as he noted later, it was released 35 -- the volcker rule, as he noted later, it was really 35 pages. the rest was commentary. and i think the basic t, the basic purpose, the basic goals are in place. >> are you satisfied with the occupied wall street movement? do you have any comments on that movement? >> i think the frustration those people face, i think they see what was historic effort to stabilize our financial system. they, like us, are still unsatisfied with the state of the economy and feel a sense of unfairness in how the economy has rewarded the different segments of the public, not just in the past couple of years, but in the last 10 or 12 years. i think we understand th

. >> is the white house satisfied with the way the volcker role, as is proposed, are you in support of the regulatory proposal that is in front of the people? >> we obviously, in doing financial reform, we were very active in the legislation. obviously, we do not control all of the regulations put out by independent regulators because they are independent. that said, i think we looked at the ball rolled off, as he noted later, it was released 35 -- the volcker rule, as he noted later, it was really 35 pages. the rest was commentary. and i think the basic t, the basic purpose, the basic goals are in place. >> are you satisfied with the occupied wall street movement? do you have any comments on that movement? >> i think the frustration those people face, i think they see what was historic effort to stabilize our financial system. they, like us, are still unsatisfied with the state of the economy and feel a sense of unfairness in how the economy has rewarded the different segments of the public, not just in the past couple of years, but in the last 10 or 12 years. i think we understand th