here break down the volcker rule and make sure we're all on the same page by definition the volcker rule where the separate investment banking private act equity and proprietary trading sections of financial institutions from their consumer lending arms to put this in layman's terms it keeps a bank from gambling customer bank deposits to make a profit for the bank unless that is done on behalf of the customer theoretically a bank couldn't take finds out of your checking or savings accounts. and invested in the derivatives market now the second arm of the volcker rule attempts to put a limit on the size of banks to keep them from becoming too big to fail the volcker rule was proposed by former federal reserve chairman paul volcker he was appointed by president obama to head the economic recovery advisory board and proposed the volcker rule and response to the financial panic of two thousand and eight it was passed into law under the dodd frank act and is currently being implemented by the s d c c f t c o c c and the federal reserve but this has turned into a bit of a drawn out process tod

here break down the volcker rule and make sure we're all on the same page by definition the volcker rule where the separate investment banking private act equity and proprietary trading sections of financial institutions from their consumer lending arms to put this in layman's terms it keeps a bank from gambling customer bank deposits to make a profit for the bank unless that is done on behalf of the customer theoretically a bank couldn't take it out of your checking or savings accounts and invest it in the derivatives market now the second arm of the volcker rule attempts to put a limit on the size of banks to keep them from becoming too big to fail the volcker rule was proposed by former federal reserve chairman paul volcker he was appointed by president obama to head the economic recovery advisory board and proposed the volcker rule and response to the financial panic of two thousand and eight it was passed into law under the dodd frank act and is currently being implemented by the c c f t c o c c and the federal reserve but this has turned into a bit of a drawn out process today the

here break down the volcker rule and make sure we're all on the same page by definition the volcker rule where the separate investment banking private act equity and proprietary trading sections of financial institutions from their consumer lending arms to put this in layman's terms it keeps a bank from gambling customer bank deposits to make a profit for the bank unless that is done on behalf of the customer theoretically a bank couldn't take it out of your checking or savings accounts and invest it in the derivatives market now the second arm of the volcker rule attempts to put a limit on the size of banks to keep them from becoming too big to fail the volcker rule was proposed by former federal reserve chairman paul volcker he was appointed by president obama to head the economic recovery advisory board and proposed the volcker rule and response to the financial panic of two thousand and eight it was passed into law under the dodd frank act and is currently being implemented by the f c c c f t c o c c and the federal reserve but this has turned into a bit of a drawn out process. today

here break down the volcker rule and make sure we're all on the same page by definition the volcker rule where the separate investment banking private act equity and proprietary trading sections of financial institutions from their consumer lending arms to put this in layman's terms it keeps a bank from gambling customer bank deposits to make a profit for the bank unless that is done on behalf of the customer theoretically a bank couldn't take funds out of your checking or savings accounts and invest it in the derivatives market now the second arm of the volcker rule attempts to put a limit on the size of banks to keep them from becoming too big to fail the volcker rule was proposed by former federal reserve chairman paul volcker he was appointed by president obama to head the economic recovery advisory board and proposed the volcker rule and response to the financial panic of two thousand and eight it was passed into law under the dodd frank act and is currently being implemented by the f c c c f t c o c c and the federal reserve but this has turned into a bit of a drawn out process tod

here break down the volcker rule and make sure we're all on the same page by definition the volcker rule where the separate investment banking private act equity and proprietary trading sections of financial institutions from their consumer lending arms to put this in layman's terms it keeps a bank from gambling customer bank deposits to make a profit for the bank unless that is done on behalf of the customer theoretically a bank couldn't take it out of your checking or savings accounts and invest it in the derivatives market now the second arm of the volcker rule attempts to put a limit on the size of banks to keep them from becoming too big to fail the volcker rule was proposed by former federal reserve chairman paul volcker he was appointed by president obama to head the economic recovery advisory board and proposed the volcker rule and response to the financial panic of two thousand and eight it was passed into law under the dodd frank. act and is currently being implemented by the f c c c f t c o c c and the federal reserve but this has turned into a bit of a drawn out process today

about the volcker rule what about it ok i happen to agree that if. we're going to have a federally subsidized banking industry the way we have with the banks ok there's should be limitations on that i don't think we should have been the first place but tell me what's your view on the volcker rule we need the base of the vocal rules and it's not because you want to gamble gamble on your own money don't gamble using taxpayer subsidized money don't gamble on customer accounts that's the problem but of course i did it course i just paid his own funds he's a multi-millionaire if you just. maybe not that would have been ok the problem is when he took the segregated customer accounts which are protected by institutions like the f.d.i.c or in this case. itself well ok let me switch to another earlier today former white house chief of staff erskine bowles talked about reforming the tax code and here is what happened. we can bring down the corporate tax rate the corporations will have more money available to invest and invest in this country to create jobs ove

about the volcker rule what about it ok i happen to agree that if you. we're going to have a federally subsidized banking industry the way we have with the banks ok there's should be limitations on that i don't think we should have been the first place but tell me what's your view on the volcker rule we need the poker role basically local rules and it's not but if you want to gamble gamble on your own money don't gamble using taxpayer subsidized money don't gamble on customer accounts that's the problem but of course i did it cause i just bet his own funds he's a multimillionaire if he just. maybe not that would have been ok the problem is when he took the segregated customer accounts which are protected by institutions like the f.b.i. cia or in this case. itself well ok let me switch to another earlier today former white house chief of staff erskine bowles talked about reforming the tax code and here is what happened. we can bring down the corporate tax rate the corporations will have more money available to invest and invest in this country to create j

that's great let's talk about the volcker rule what about it ok i happen to agree that if you're going to have a federally subsidized banking industry the way we have with the banks ok there's should be limitations on that i don't think we should have been the first place but tell me what's your view on the volcker rule we need the poker role basically vocal rules and it's not but if you want to gamble gamble on your own money don't gamble using taxpayer subsidized money don't gamble on customer accounts that's the problem but of course i did it course i just paid his own funds he's a multimillionaire if you just. maybe not that would have been ok the problem is when he took the segregated customer accounts which are protected by institutions like the f.d.i.c or in this case. itself well ok let me switch to another earlier today former white house chief of staff erskine bowles talked about reforming the tax code and here is what happened. we can bring down the corporate tax rate the corporations will have more money available to invest and invest in this country to create jobs over her

about the volcker rule what about it ok i happen to agree that if you. we're going to have a federally subsidized banking industry the way we have with the banks ok there's should be limitations on that i don't think we should have been the first place but tell me what's your view on the volcker rule we need the base of the vocal rules and it's not good if you want to gamble gamble on your own money don't gamble using taxpayer subsidized money don't gamble on customer accounts that's the problem of course i did it course i just bet his own funds he's a multimillionaire if you just. maybe not that would have been ok the problem is when he took the segregated customer accounts which are protected by institutions like the f.d.i.c or in this case the us itself well ok let me switch to another earlier today former white house chief of staff erskine bowles talked about reforming the tax code and here is what happened. we can bring down the corporate tax rate the corporations will have more money available to invest and invest in this country to create jobs ove

about the volcker rule what about it but i happen to agree that if you. we're going to have a federally subsidized banking industry the way we have with the banks ok there's should be limitations on that i don't think we should have been the first place but tell me what's your view on the volcker rule we need the poker world basically local rules it's not me if you want to gamble gamble on your own money don't gamble using taxpayer subsidized money don't gamble on customer accounts that's the problem but of course i did it cause i just bet his own funds he's a multimillionaire if you just. maybe not that would have been ok the problem is when he took the segregated customer accounts which are protected by institutions like the f.d.i.c or in this case. itself well ok let me switch to another earlier today former white house chief of staff erskine bowles talked about reforming the tax code and here is what happened. we can bring down the corporate tax rate the corporations will have more money available to invest and invest in this country to create jobs ov

what does the volcker rule ultimately mean? what does regulation ultimately mean for long-term profitability, for return on equity? >> yeah. so the volcker rule is not written yet, and we don't do real prop trading. most of our business is client-driven trading. and we are hoping when the volcker rule is finished, that we continue to do all the things we do. we deal with 16,000 clients around the world. they come to us, great prices, research, execution, and that's good for the investor and the issuer. i want to point out, since i'm on the new york stock exchange floor, that the united states has one of the best economies the world has ever seen and the widest, deepest, most transparent capital markets which were part of the engine that made this country great. so let's make sure we're all done with these rules, that we've still got this. this is outstanding. >> we have the united states senate, okay? senate, 100 of them, one of them very important, elizabeth warren, comes out and says, listen. enough with this. banking should

about the volcker rule what about it ok i happen to agree that if you're going to have a federally subsidized banking industry the way we have with the banks ok there's should be limitations on that i don't think we should have been the first place but tell me what's your view on the volcker rule we need the poker role basically of local rules and it's not good if you want to gamble gamble on your. money don't gamble using taxpayer subsidized money don't gamble on customer accounts that's the problem of course i did it course i just paid his own funds he's a multi-millionaire if you just. maybe not that would have been ok the problem is when he took the segregated customer accounts which are protected by institutions like the f.d.i.c or in this case and the law as the us itself well ok let me switch to another earlier today former white house chief of staff erskine bowles talked about reforming the tax code and here is what happen. if we can bring down the corporate tax rate corporations will have more money available to invest and invest in this country to create jobs over here it will make

the volcker rule is it was a 21st century version of glass steagall. it was going to be regulatory rules that drew that church/state separation between the risky stuff and insured stuff and it's a year later from when we should have the volcker rule and we do not have it. what to you make of that? >> in fact, i'm going to push the point further. you remember when the crash occurred what we all talked about is that one of the problems we had that created too big to fail was too much concentration of the top. the big institutions were just too big and too concentrated. well, here's what's happened. the big four financial institutions are 30% bigger than they were 5 years ago. and so the big have gotten bigger. and what that means is we just have to add another tool to the toolbox. none of this, well, you know, we'll try to find our ways. we should. we should. do what we can to bring down risk in the system, but glass steagall is one way to do that, and we should do it. >> very quickly, senator, jack lew, who's now in treasury, heading up treasury. his co

the volcker rule is it was a 21st century version of glass steagall. it was going to be regulatory rules that drew that church/state separation between the risky stuff and insured stuff and it's a year later from when we should have the volcker rule and we do not have it. what to you make of that? >> in fact, i'm going to push the point further. you remember when the crash occurred what we all talked about is that one of the problems we had that created too big to fail was too much concentration of the top. the big institutions were just too big and too concentrated. well, here's what's happened. the big four financial institutions are 30% bigger than they were 5 years ago. and so the big have gotten bigger. and what that means is we just have to add another tool to the toolbox. none of this, well, you know, we'll try to find our ways. we should. we should. do what we can to bring down risk in the system, but glass steaga steagall is one way to do that, and we should do it. >> very quickly, senator, jack lew, who's now in treasury, heading up treasury.

that's great let's talk about the volcker rule what about it ok i happen to agree that if you're going to have a federally subsidized banking industry the way we have with the banks ok there's should be limitations on that i don't think we should have been the first place but tell me what's your view on the volcker rule we need the poker world basically local rules and it's not because you want to gamble gamble on your own money don't gamble using taxpayer subsidized money don't gamble on customer accounts that's the problem but of course i did it cause i just bet his own funds he's a multimillionaire if he just. maybe not that would have been ok the problem is when he took the segregated customer accounts which are protected by institutions like the f.b.i. cia or in this case. itself well ok let me switch to another earlier today former white house chief of staff erskine bowles talked about reforming the tax code and here is what happened. we can bring down the corporate tax rate the corporations will have more money available to invest and invest in this country to create jobs over h

of the volcker rule as initially written you could hold proprietary positions in your trading book if you sold them in 60 days. anything longer than that would be exempt under the rule as it was initially written which is why it wouldn't have affected jpmorgan london whale. london whale was more long-term positions but -- go ahead. >> it would have affected market-making. >> would have affected market-makeing. >> holding inventory for your clients. that is fundamental basis what a wall street firm does, makes markets and liquidity. >> that is the problem. >> it would dry up the liquidity. >> interpreted on its face it basically says the u.s., the global securities markets actually have to cease to function. that is. one of the problems with it. >> but one thing about always too big to fail there is systemically risk rules coming down, i'll tell you the executive pay rule also put into dodd-frank a lot of union reaction support, telling the investor how much ceos get paid in relationship to the average worker. boy, that is getting blasted out of the water. at&t, mcdonald's weighed in,

rule and just a bit and i'll be talking to richard wolffe about dysfunctional detroit in just a minute and speaking of dysfunction or capital markets might have a shining night we'll have to see but there's a new exchange in town. and it's expressly designed for large investors who do not want to be gamed by high frequency trading so instead of allowing client computers to sit right next to the extreme his own servers will be in a separate building so instead of the delay of ten million so the spike in the current industry standard the delay will be three hundred fifty million sort of seriously folks this is what trading has come to. and this is what's in your prime interest. detroit's historic eighteen billion dollars bankruptcy has highlighted issues of inequality the divide in detroit between the city were per capita income is fifteen thousand dollars and the suburbs with some counties averaging income above sixty thousand dollars has fueled specular.

rule that says banks cannot gamble with customer money lloyd blankfein said his goldman sachs doing this but guess what he did it we just learned that the firm found a loophole to keep doing it anyway over a billion dollars worth learned.

rule that says banks cannot gamble with customer money lloyd blankfein said his goldman sachs doing this but guess what he did it we just learned that the firm found a loophole to keep doing it anyway over a billion dollars worth we'll learn how this is possible and how it might add we talked to part naylor a public citizen finally we have eliot spitzer who resigned in disgrace in two thousand and eight just as applied anshul panic was heating up well he's back and he's looking to oversee new york one hundred forty billion dollars city pension plan he won't be able to bring charges or things cool right so. find out what's in your prime interest.

rule and just a bit and i'll be talking to richard wolffe about dysfunctional detroit in just a minute and speaking of dysfunction or capital markets might have a shining night we'll have to see but there's a new exchange in town. and it's expressly designed for large investors who do not want to be gamed by high frequency trading so instead of allowing client computers to sit right next to the extreme his own servers will be in the super building so instead of the delay of ten million service like in the current industry standard the delay will be three hundred fifty million sort of seriously folks this is what trading has come to. and this is what saying you are prime interest.

rule and just a bit and i'll be talking to richard wolffe about dysfunctional detroit in just a minute and speaking of dysfunction or capital markets might have a shining night we'll have to see but there's a new exchange in town. and it's expressly designed for large investors who do not want to be gamed by high frequency trading so instead of allowing client computers to sit right next to the extreme his own servers will be in the super building so instead of a delay of ten millionth of a second the current industry standard the delay will be three hundred fifty million sort of seriously folks this is what trading has come to. and this is what's in your prime interest. or. little. detroit's historic eighteen billion dollars bankruptcy has highlighted issues of inequality the divide in detroit between the city were per capita income is fifteen thousand.

rule comes into effect even if we have a reincarnation of glass steagall almost a federal reserve stops printing and giving away this free money to the banks because there's too much money at stake to really have any real reform because the people who are instituting these reforms supposedly are the ones who are regulating who are the ones who are writing the rules like j.p. morgan well we could go through a long list of what's wrong with the fed but i don't think the fed is the problem here really what we're talking about with glass steagall is separating gambling banking investment banking from checkbook banking old fashioned commercial banking you know if you have a checkbook have a savings account if your mortgage with the bank and from nine hundred thirty from the founding of the republic until nine hundred thirty five we never went more than fifteen years without a major national banking haneke in one thousand thirty five we put into place glass steagall which said you have to choose if you want to be a bank either you're like merrill lynch and you're an investment house and you g

rule comes into effect even if we have a reincarnation of glass steagall almost a federal reserve stops printing and giving away this free money to the banks because there's too much money at stake to really have any real reform because the people who are instituting these reforms supposedly are the ones who are regulated or who are the ones who are writing the rules like j.p. morgan well we could go through a long list of what's wrong with the fed but i don't think the fed is the problem here really what we're talking about with glass steagall is separating gambling banking investment banking from checkbook banking goldfish in commercial banking you know if you have a checkbook have a savings account if your mortgage with the bank and from nine hundred thirty from the founding of the republic until nine hundred thirty five. we never went more than fifteen years without a major national banking haneke in one hundred thirty five we put into place glass steagall which said you have to choose if you want to be a bank either you're like merrill lynch and you're an investment house and you g

rule comes into effect even if we have a reincarnation of glass steagall almost a federal reserve stops printing and giving away this free money to the banks because there's too much money at stake to really have any real reform because the people who are instituting these reforms supposedly are the ones who are regulating who are the ones who are writing the rules like j.p. morgan well we could go through a long list of what's wrong with the fed but i don't think the fed is the problem here really what we're talking about with glass steagall is separating gambling banking investment banking from checkbook banking old fashioned commercial banking you know if you have a checkbook you have a savings account if your mortgage with the bank and from nine hundred thirty from the founding of the republic until nine hundred thirty five we never went more than fifteen years without a major national banking anik in one thousand thirty five we put into place glass steagall which said you have to choose if you want to be a bank either you're like merrill lynch and you're an investment house and you

rule that says banks cannot gamble with customer money lloyd blankfein said his goldman sachs doing this but guess what he did it we just learned that the firm found a loophole to keep doing it anyway over a billion dollars worth we'll learn how this is possible and how it might add we talked to part naylor a public citizen finally we have eliot spitzer who resigned in disgrace in two thousand and eight just as applied anshul panic was heating up well he's back and he's looking to oversee new york one hundred forty billion dollars city pension plan he won't be able to bring charges or things cool dry so. find out what's in your prime interest. you might remember that elementary school lesson how a bill becomes a law the law or statue. it isn't acted by congress it's usually somewhat vague by design but what happens after it's passed it's up to government regulators to make specific rules or regulations to implement the law this rule making process goes on usually with the help of the very entities that are being regulated now that's why j.p. morgan attends all those meetings with th

rule that says banks cannot gamble with customer money lloyd blankfein said his goldman sachs doing this but guess what he did it we just learned that the firm found a loophole to keep doing it anyway over a billion dollars worth we'll learn how this is possible and how it might add we talked to part naylor a public citizen finally we have eliot spitzer who resigned in disgrace in two thousand and eight just as applied anshul panic was heating up well he's back and he's looking to oversee new york one hundred forty billion dollars city pension plan he won't be able to bring charges or things cool right so. find out what's in your prime interest. you by it. elementary school lesson how would bill becomes a law the law or statute is an act of by congress it's usually somewhat vague by design but what happens after it's passed it's up to government regulators to make specific rules or regulations to implement the law this rule making process goes on usually with the help of the very entities that are being regulated now that's why j.p. morgan attends all those meetings with the c f t c

rule that says banks cannot gamble with customer money lloyd blankfein said his goldman sachs doing this but guess what he did it we just learned that the firm found a loophole to keep doing it anyway over a billion dollars worth we'll learn how this is possible and how it might add we talked to the partner of public citizen finally we have eliot spitzer who resigned in disgrace in two thousand and eight just as a plight anshul panic was heating up well he's back and he's looking to oversee new york's one hundred forty billion dollars city pension plan you won't be able to bring charges of things cool dry so. find out what's in your prime interest. you might. elementary school lesson how would bill becomes a law the law or statute is an act of by congress it's usually somewhat vague by design but what happens after it's passed it's up to government regulators to make specific rules or regulations to implement the law this rule making process goes on usually with the help of the very entities that are being regulated now that's why j.p. morgan attends all those meetings with this you

rule comes into effect even if we have a reincarnation of glass steagall almost the federal reserve stops printing and giving away this free money to the banks because there's too much money at stake to really have any real reform because the people who are instituting these reforms supposedly are the ones who are regulated or who are the ones who are writing the rules like j.p. morgan well we could go through a long list of what's wrong with the fed but i don't think the fed is the problem here really what we're talking about with glass steagall is separating gambling bank investment banking from checkbook banking old fashioned commercial banking you know if you have a checkbook you have a savings account if your mortgage with the bank and from nine hundred thirty from the founding of the republic until nine hundred thirty five we never went more than fifteen years without a major national bank in panic in one hundred thirty five we put into place glass steagall which said you have to choose if you want to be a bank either you're like merrill lynch and you're an investment house an

rule comes into effect even if we have a reincarnation of glass steagall on lists of federal reserve stops printing and giving away this free money to the banks because there's too much money at stake to really have any real reform because the people who are instituting these reforms supposedly are the ones who are regulating who are the ones who are writing the rules like j.p. morgan well we could go through a long list of what's wrong with the fed but i don't think the fed is the problem here really it we're talking about with glass steagall is separating gambling banking investment banking from checkbook banking old fashioned commercial banking you know if you have a checkbook you have a savings account if your mortgage with the bank and from nine hundred thirty from the founding of the republic until nine hundred thirty five we never went more than fifteen years without a major national banking anik in one thousand thirty five we put into place glass steagall which said you have to choose if you want to be a bank either you're like merrill lynch and you're an investment house and

rule that says banks cannot gamble with customer money lloyd blankfein said his goldman sachs doing this but guess what he did it we just learned that the firm found a loophole to keep doing it anyway over a billion dollars worth we'll learn how this is possible and how it might add we talked to the partner of public citizen finally we have eliot spitzer who resigned in disgrace in two thousand and eight just as applied anshul panic was heating up well he's back and he's looking to oversee new york one hundred forty billion dollars city pension plan he won't be able to bring charges of being schooled right so. find out what's in your prime interest. you might. elementary school lesson how would bill becomes a law the law or statute is an act of by congress it's usually somewhat vague by design but what happens after it's passed it's up to government regulators to make specific rules or regulations to implement the law this rule making process goes on usually with the help of the very entities that are being regulated now that's why j.p. morgan attends all those meetings with the c f

rule comes into effect even if we have a reincarnation of glass steagall almost a federal reserve stops printing and giving away this free money to the banks because there's too much money at stake to really have any real reform because the people who are instituting these reforms supposedly are the ones who are regulated or who are the ones who are writing the rules like j.p. morgan well we could go through a long list of what's wrong with the fed but i don't think the fed is the problem here really it we're talking about with glass steagall is separating gambling banking investment banking from checkbook banking goldfish in commercial banking you know when you have a checkbook you have a savings account if your mortgage with the bank and from one hundred thirty from the founding of the republic until nine hundred thirty five. we never went more than fifteen years without a major national bank. in one hundred thirty five we put into place glass steagall which said you have to choose if you want to be a bank either you're like merrill lynch and you're an investment house and you gamble

rule that says banks cannot gamble with customer money lloyd blankfein said his goldman sachs doing this but guess what he did it we just learned that the firm found a loophole to keep doing it anyway over a billion dollars worth we'll learn how this is possible and how it might add we talked to bart naylor a public citizen.

rule that says banks cannot gamble with customer money lloyd blankfein said his goldman sachs stopped doing this but guess what he did it we just learned that the firm found a loophole to keep doing it anyway over a billion dollars worth we'll learn how this is possible and how it might add we talked to part naylor a public citizen finally we have eliot spitzer who resigned in disgrace in two thousand and eight just as a flight anshul panic was heating up well he's back and he's looking to oversee new york's one hundred forty billion dollars city pension plan he won't be able to bring charges of things school so. find out what's in your prime interest. you might remember that elementary school lesson how a bill becomes a law the law or statute as an act of by congress it's usually somewhat vague by design but what. happens after it's passed it's up to government regulators to make specific rules or regulations to implement the law this rule making process goes on usually with the help of the very entities that are being regulated and that's what j.p. morgan attends all those meetings

rule that says banks cannot gamble with customer money lloyd blankfein said his goldman sachs stopped doing this but guess what he did it we just learned that the firm found a loophole to keep doing it anyway over a billion dollars worth we'll learn how this is possible and how it might add we talked to the partner of public citizen finally we have eliot spitzer who resigned in disgrace in two thousand and eight just as applied anshul panic was heating up well he's back and he's looking to oversee new york's one hundred forty fillion dollars city pension plan you won't be able to bring charges of things cool dry so . find out what's in your prime interest. you by. elementary school lesson how would bill becomes a law the law or statute is an act of by congress it's usually somewhat vague by design but what happens after it's passed it's up to government regulators to make specific rules or regulations to implement the law this rule making process goes on usually with the help of the very entities that are being regulated and that's what j.p. morgan attends all those meetings with this

rule comes into effect even if we have. reincarnation of glass steagall almost a federal reserve stops printing and giving away this free money to the banks because there's too much money at stake to really have any real reform because the people who are instituting these reforms supposedly are the ones who are regulating who are the ones who are writing the rules like j.p. morgan well we could go through a long list of what's wrong with the fed but i don't think the fed is the problem here really what we're talking about with glass steagall is separating gambling banking investment banking from checkbook banking old fashioned commercial banking you know if you have a checkbook you have a savings account if your mortgage with the bank and from nine hundred thirty from the founding of the republic until nine hundred thirty five we never went more than fifteen years without a major national banking anik in one hundred thirty five we put into place glass steagall which said you have to choose if you want to be a bank either yo

rule that says banks cannot go.

the other thing is, of course you know, we're working hard with our colleagues to put the volcker rule into place, and that will restrict proprietary trading. >> let me just say, mr. chairman, the question i'm trying to ask about is whether this indicates they are loading up on risk, and i very much appreciate that what you were telling me about are the ways we are trying to regulate the risks when the banks take it on. maybe i could ask this slightly differently -- yesterday, secretary treasury jack lew said if we get to the end of this year, and we cannot with an honest, straight face say that we have ended too big to fail, we're going to have to look at other options. with the secretary of the treasury? >> i don't know about the timing. maybe i would take another year from now. but i have said to you in an earlier hearing that there is a strategy. dodd frank laid out a strategy. basel three provides additional support and capital, etc., but if those things do not make us comfortable about the status of these largest firms, yes, i do think additional steps would be appropriate. >> th

you talk about the volcker rule. and put that all together and the supply and demand in the space has been very much in our favor. now we're talking today with bernanke about needing $600 billion more capital. i'm optimistic that the long run future of our business is strong. >> let me -- you mentioned your billy bean-style of investing. you have this big presentation that you've put together based on that and the use of analytics and trying to find value where others don't see it. if you could make one pick right now, where is the greatest value right now within fixed income? bring it down to a level that everybody can understand. >> municipal bonds here. municipal bonds got incredibly beat up in the last few weeks. there was an issue recently from the texas permanent school fund, and if you know what we call psf, it's one of the safest issuers out there. it's backed by land and oil revenues in texas. they bake a 30-year bond at a 4.6% yield. compare that to the treasury at 3.6% you're getting 100 basis points extra

rule into place and that will restrict proprietary trading. >> let me say then, mr. chairman, the question i'm trying to ask about is whether this indicates they're load roing up on risk, and i very much appreciate what you're telling me about are the ways we're trying to regulate the risk when the banks take it on. maybe i could ask this slightly differently. and that is yesterday secretary treasury jack lew said, and i want to get the quote right, if we get to the end of this year and we cannot with an honest, straight face say that we have ended too big to fail, we're going to have to look at other options. do you agree with the secretary of the treasury? >> i don't know about the timing. maybe i take another year from now, but i have said to you in an earlier hearing that, you know, there is a strategy. dodd/frank lays out a strategy. basel three provides additional support through capital, et cetera, but if those things do not make us comfortable about the status of the largest firms, i think addition yam steps would be appropriate. >> then we need to look at ot

the volcker rule which we were glad to help enact into law and i believe will be enacted in very tough form, will be a great protection. so yeah, you got to be careful about this, but as of now i see no evidence that the people who had worked in the financial industry are being weak. i did notice recently "the new york times" front page of the business section saying, boy, mary jo white's getting tough. that's a good thing. >> by the way, alex, just to add to that, you take people like neal womin, they provided great leadership and source of information and support as we worked through all of this. there are very good people there. tim geithner i think did a good job in many, many ways. i know he's received a lot of criticism but again without their help and support as we did out of the white house, this would have been very difficult to do. so i endorse what barney's just said. think it is more testing how people do in the jobs they have, whether or not where they've come from necessarily. but again i'd emphasize the important point of reaching out just beyond that sector when you are

finally, the volcker rule, the big kahuna, how to eliminate the risky trading. the banks are the ones clamoring onto the calendars to be heard. the sunshine foundation calculates a thousand meetings between the five big banks. goldman sachs tops the list. 222 meetings between goldman executives and washington regulators on how dodd-frank shakes out. an uphill battle. five months left. a lot still to do. bill and kelly? >> wow. >> yes. a lot to do, obviously. kayla, thanks very much. so three years after dodd-frank was signed into law, details, as you saw, are still being worked out. critics continue to question whether it will prevent the kind of risky behavior that caused the financial crisis of several years ago. >> and one-half of the duo that wrote that law joins us with his take on the law and its critics, former massachusetts congressman barney frank. congressman, thank you for joining us. >> welcome back. >> thank you. >> we want to start out with the news that kayla mentioned there. is it the spirit of this law -- do you think it should be the case that

what i tell people about this, when we put the volcker rule in place, we went down the road to glass stegeal. we restricted the activities of the banks. if you look at jpmorgan, after the london whale fiasco, that whole portfolio is passive. all the people working in the office had been fired. there is less liquidity. they were a marketmaker. look at last month. part of the reason june was such a mess after chairman bernanke's statements is that the dealers can't deploy capital in the market for their own account anymore. given that, you know, if we're not going to take away the volcker rule restriction, we separate the two houses. want all that capital in the dealer available to the market. >> so in a hoiypothet cal situation, doesn't it tie their hands behind their back? >> by limiting activities, you're halfway down the road to glass stegeal separation of the house, but you sequestered all the capital off to one side. so you can't trade that. that's a problem. >> i am going to defend this move. because somebody has to. >> i support it. i have no problem with it. >> good. let's go

the other thing, of course, you know we are working hard with our colleagues to put the volcker rule in place. it will restrict proprietary trading. >> let me say, mr. chairman, the question i'm trying to ask whether it indicates they're loading up on risk. i appreciate what you're telling me about the ways we're trying to regulate the risk when the banks take it on. maybe i can ask it slightly differently. that is yesterday secretary of treasury jack lou said, i want to get the quote right. if we get to the end of the year and cannot with an honest straight face say we have end too big to fail, we're going have to look at other options. do you agree with the secretary and treasury? >> i don't know about the timing. maybe another year from now. i've said to you in an earlier hearing there's a strategy. dodd-frank lays out a strategy. bozell three provides additional support. if those thing do not makes comfortable about the status of the largest firms, i think additional steps would be appropriate. >> we need to look at other steps, as you know, i introduced, along with senator mccai

though volcker rule went a long way. connell: from 1933-1899 we did all right. did you get rid of it and the crisis comes a decade later. >> i think that there is some merit to that. a lot of deals they did, you wonder why does the world need that to go on? they did not have enough capital. there is 50,000. most of the banking gets done at ground level. there is some trading that makes it easier for banks to actually loan because they can hedge themselves. they can trade loans. they can do other things. i do not think you want to take that away. that can hurt the loan business. connell: we have a big endorsement for bernanke. a hot topic of discussion. the stock market has been propped up by the fed for however long. some say the rates have been too low for too long. we are in the process of re-creating a situation that we already have. why do like what bernanke and federal reserve has been doing? >> from a big picture, we are going through a massive deleveraging in the western world. we have too much debt for the amount of income we generate. the fiscal policym

>> what we have seen so far when you look at jpmorgan and citigroup is that with the volcker rule kind of looming out there for these broker dealers within these big money center banks, they have avoided taking positions. so-so far what we have seen say better than expected performance, especially when the significant spike in interest rates could create some losses and fixed income. if goldman can avoid that, we think they can earn more than $3 today, significantly beating what you just said in the 288, 290 range that the street expects. >> so you're looking for something to beat. if they do that, how does that set them up for the second part of the year? >> well, what we're going to see is that customer flows and activities are picking up. if they have been able to avoid the position losses, it starts to set them up for a strong back into the year when the economy starts to get some traction. we start to see rotation of investors off the sidelines, and goldman sachs is there to make a market in a lot of these different areas that are starting to -- at least get some fresh breath of f

rule we were talking about a minute ago, to trade their own proprietary books. that is, banks have some profitability so, they can go out and buy derivatives and play the stock market. and that might sound all fine and dandy except that remember, these banks are insured by us, the taxpayers. so that to me gives us a real entry point for the kind of oversight that the congresswoman was talking about. as long as we're going to backstop these folks, then we have every right i think to regulate issues like this that are clearly unjust. >> i love let's make banking boring. like i want that on a bumper sticker. let's move back to the "it's a wonderful life" version of banking and not the -- >> you want to go out and play golf at 3:00? be my guest. don't take the economy -- >> while you're doing it. thanks for being here this morning. up next, the connection between jobs and hunger and what it really takes to put food on the table. one of my favorite guests is returning to nerdland. would you mind if i go ahead of you? instead we had someone go ahead of him and win fif

rule, for example, i think 22 separate people have defined relevant agencies, have a say in. and when agencies that are not necessarily sharing the same basic approach like the three banking agencies have to deal with one another, again there may be some learning. i think there has been some learning. that's been the good side of t but it really does take -- side of it, but it really does take quite a while, and it does require sometimes you have different elements of proposals being placed together in a way that no one agency would on its own have done. i think someone -- being in the middle of it it seems very long, can be frustrating, it takes that much time. you don't get frustrated with the individuals, you just -- with the process taking as much time as it does. the i think probably we'll have to wait until the whole process is over for more objective observers to ask the question, on net has the value of different perspectives been such as to make that kind of rule making with multiple agencies the best way to go? i think it's a little early to judge yet, but i think i

how soon can we expect this to be completed, especially in regards to the volcker rule and what if any barriers are there to completing these rules? >> assure that concerns one of my highest priorities is to complete the congressional mandate that is under the dodd-frank at and the job back. and we have made very good progress and we are pushing hard to complete those and this includes a precise timetable. we will see through the summer and the fall and throughout the year that there is rule-making coming out in the expectation and hope i'm not. i'm not saying every single one will be done by year-end. but in terms of derivatives as i mentioned in my testimony, our comment on the cross-border proposal ends on august 21. we did have substantive rules that we proposed propose in that comment ended on july 22. so it is my hope and expectation that we will move into the adoption phase when those comments are completed. this is part of a joint rule-making issue and we are working actively now with our fellow regulators are not. both the staff and the commission level. and that is the hope a

rule and we hope to complete it by year-end. finally we are preparing to regulate non-bank financial firms and last week the financial stability oversight council designated to non-bank financial firms for the designation of a third firm before the council. we are developing a supervisory and relatively framework to be tailored to each firm and risk profile of a systemic footprint consistent with the collins amendment and others under the dodd-frank act. thank you, mr. chairman. i'm pleased to take questions. >> thank you. the chair will recognize himself for five minutes for questions. mr. chairman, the first question is obvious as you testified before the joint economic session for "the wall street journal." mr. bernardi's testimony was released early in this and the dow jones has dropped almost 600-point. these commons of july 10 have been part of the s&p record highs. this is an easy type of money, quote and unquote. you have described or thresholds is providing guidance to the market, which have also qualified that the thre