WWL>Topics>>Think Tank 1210pm Regulating Banks

Think Tank 1210pm Regulating Banks

Jun 14, 2016|

Wall Street banks cost current Americans and future generations $8 trillion dollars during the 2008 financial collapse.  Now some members of congress say we’re regulating banks too much and they want to go back to the old ways.  Are we still in favor of a “free market”? This hours guest: Dr. John Fleming - U.S. Congressman Dr. Rajesh Narayan - Cameron Professor of Finance @ LSU (International Banking Expert) Specialty is banking and financial markets.

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Automatically Generated Transcript (may not be 100% accurate)

Beer every single move with the big short it was based on the book Britain borrow all New Orleans and Michael Lewis. Read the book and movie it is the oil and we have ever been through twice of Mosul complicated but it's and they. And the point that got me when to do and with brand of when to move and world talking and so board comprised about the movie O Neal Gabler. And nobody's sent. Nobody's. Taxpayers. Had to take care of eight trillion dollars law. Because of what was done with the back. Now after running the show juniors I am only aware. Take with a grain of salt in the movie and the book in the review. In the news. From ancient. You better chart contracted points. And it. When all the ban that. There was a lead them to exit said in congress. Is stale trying to do this again. So epic double Wall Street Journal article in its. Republican victory in London Brent roller and with an old significance. Going back. And regulations. And since the two votes that he mixes. According to a policy blueprint. To be embryo boy. Who law maker. Beecher and adults from the services committee. We've got to blunt statement. Before we put out in parliament and luckily. We're doctor drunk flipping around euros congressman doc Perry appreciate. It. I appreciate it when or if at some hoping and poked the guardian. And dismissed the case and Wall Street Journal. And batons and said there are threatened Robertson dog for a bull. It is is it's what the Wall Street Journal says. Well let's again let's look at what happened could if we don't war. I never. Respectively in the future. I actually that's ultimately the big short and actually it will certainly yours. Entered its very complicated that in their simple terms what happened was. And it's a very Smart people. On Wall Street yet to figure out the the whole thing was a Ponzi scheme. That would really created by government and exported. Wall Street and that Wall Street banks org thanks. The housing market like difficult playing what the scheme it was and that failed they came out with a method that make them money or call default swaps. Which basically means that you make money. When other people lose money that's what shorting stocks. All. And I will go into all complexity of their. But let let's understand how to Wall Street bought well. Was done what should be done. What happened once in the seventies and eighties. Government vote Republican and Democrat. Decided that. Did this whole idea that successful people own their own homes. Or something that they should portrait as a government policy so they did let's see how we should warn that many people in their home ownership possible. Will make. Getting into law home homeownership shut we. It is that anybody can do it wants it they're all. Are they were in the count successful the problem is that people are often successful or unsuccessful because of their behavior. Not the cause they actually own your own home. So as people. Who really didn't have jobs are good jobs so more responsible with their audit. Is they began to take on homeownership. And the interest rates were ridiculously low first because yeah. You know the discount rate and everything go much for a much out much our little later. Then again it's the opportunity. And elderly trouble locating and and for heaven's sakes will make these loans to brokers caddie and whale. And will will fail these loans immediately. They don't want ally and it won't ever be held responsible people actually go all Al all. And that 10210. About twenty years and finally all of these loans in the all about any Mae and Freddie Mac. And nobody knew just how risky those loans war except for this small group of people in the boot EP short figured out. An oncoming disaster trillions of dollars. Of defaults were headed and they took advantage so. Oh. Lincoln Michael book and in the movie. Important. Europe in the government did understand. What was in the Arctic. Wheldon we're going and. Your raw what happened wars as this again to the payroll and fast. People began to become concerned about it rebels are on strike. Do they have a ways and means in my house represented to serve came out. People went to him that you need to look into the reassured. That everything was okay and it was a bill mania are forward at all. Over the opening of refused to do anything about it when it would've counted. And so what is true is that when big government comes together it would be a bit stick Wall Street and big banks. Watching out. It's going to be a disaster what we have now with Dodd-Frank. Is now a local regulation hyper regulation. Which should make it big banks even bigger. And next time they fail they want even have to go to congress to bail them out it'll be off the bat. Funeral that we're getting close to a break and we'll get to form we. Everything and stay in the American people whose eight trillion. Dollars. At a fixed ropes of my life. My files and probably children. And when you were on board now Wall Street. Journal says it's. If the GOP's job controlling. And now financial services committee. Get what you want the government would no longer have the power to stay and that oversight and creates for each. To the big non things branded. Systemically. Important. In the magma thing would be reviewed from the rule. This that. It's in July. And one point. Oh prudently and said. That appalled Kurds experts say the war effort. During the big. Well again and there's that element console war in the wrong direction and Garland. Or in the other direction not that it people can't get loans now who deserved well. So that and then on engagement there we have this consumer protection agency that would create. Frank. That's been a complete disaster has no funding oversight of the federal government take she from bank. And it's it's going out there and damaging the economy as well. So I think we need a happy medium here so we've gone from. An error in which we had liberal progressive governments the war relaxing the standards on loans taken away your ability. 21 after dark ranked pass where so many people who deserve blondes just simply can't you at all. And so we need to move it into a happy medium where there's accountability group by. But all those that people with good credit can actually get along either. A lunatic or gears they would start to work come back but yeah. Get about Maria brings in Wall Street Journal article that says in the first or. A Republican victory in November election would herald significant scale and financial regulations. Enacted. Against bank since the 2008. Crisis. We have. Doctor drew on polluting with sorrow and Cologne and doctor with. Isn't there shoves don't here's one headline. Gates of bankers to bigotry. This is HSBC. Bank. They. Drug product for hours and over and got what went. They funded hundreds of billions of dollars frog bought some old cartel. And they've moved Monday. Or Hezbollah. Al-Qaeda. You're wrong. On Korea Sudan. Helping murderers and terrorists. They get caught three and he was a turning of the time miracle on the third gore round. Said well you know we're gonna find them at least one group that their profits for the year. And we're not in the GO Lynn Barton Roy get a true origin by him we're not gonna name any body because this hate these two big two days. That was followed by of these headlines. Thanks for and they into Mexico drug gangs Wachovia bank Bank of America. Wells for ago. In regulation. Concerning banks. Or pull back because we're going to more. The pendulum swings do you go away. And once again bank store doomed wrong. We gonna be told they're too big. Well and again. The guy trying to act actually rate that banks bigger and even could be. More to fail I made the problem worse. And it's the same time it's footage struggle on capitol for a lot of good people good citizens. Can't now via home homeownership. Is down substantially. Well below what should be able to when it comes to making loans to get strokes now. It's far. Criminal activity there's plenty of statute on the books Rico and all there. You have an administration. That refuses to go after are criminals. Refuses to go after arts district he used to go to. An actor though history here in our nation illegally. So the problem is lack of law enforcement not. Not that the fact that we need more regulation you can have all the regulations war. By the people don't and forceful wall vineyard airport that he criminals that you really should go to jail if they're the committee are. Is there anything in the regulation that says one somebody breaks ball law. And the banking community they need to be named and chart. Oh absolutely. That the law or they. Art I can't think it's. There may have been and water too or maybe your handful of people who went to prison with the 2008 debacle but I'm I could name you want people aren't. But laws were broken and people should have been held cap this administration refused to go after. Like they often in fact we have a president who's turning out people. Our prisons today ran it and prosecuted. We even half as someone running for president and Hillary Clinton. Who is under criminal investigation by the FBI. But we are all very doubtful that you turn curable. Well get past the political world com and actually go after her. So at all fault it's not it's not about regulations so much and not about congress. It's about it administration unwilling to enforce the law. I'm struggling with one of Wall Street Journal who's not exactly know owned in liberal publication. Says the years in controlling bill addresses many of the complaints lodged by the financial industry. Over the past five years. You mentioned the consumer watchdog groups that want to aug. The agreed to warn you that then hands and Oprah do anything. Would please new limits. On its evidence to bring lightly regulated corners of an eight attempts. Under federal control. It youth. If what you're saying is correct. What is probably better for the fear that the GOP. Is trying to put. He. In the long that we have to dare and he knows and YouTube. You've got to understand. That you will he ever children in the next few German operations. Organ pay eight trillion dollars stolen from. And we look back stronger and it is broke drugs. And nobody's named Orson that oh. We're in pretty conducive to hold should there not be some sort. Oil of legislation. That addresses. What will Garland that's the whole point that secret there at the legislation this year. We have an administration. That letters and charger or. Good bit of interest BC bank did this three times and one time under the boosted capturing. Well today that he wasn't the bush administration's but the prosecution would have been here you know while at the church so. Again we have. And those those highly placed there for a politician like Barack Obama. And Hillary Clinton. Bank profits from those bank I mean Hillary is strong primitive. Clinton foundation part of billions of dollars. Only fair thing people. So there is not gonna go where these people it's a corrupt system. But congress has passed way more law we've actually seen it drop in community banks by 40%. Because dock strike is putting them out of business. A lot like you community thanks thanks weaker it's making the big Newport stronger and the Wall Street Journal. And loaded big government. Doctor John poisoning were run out time. Anytime you born talk additionally about his story in the of the permitting and it was called lose its could have been we're appreciated. Oh. All right take a break in at about Hillary Clinton right about the don't cry. Which brings millions of the question of how we voting Republican or Democrat. You really believe the GOP gonna get it and or Hillary Clinton's gonna get a hand and bank rolling rock it's. And funding terrorists. Not one not two or not three but for that we know. We're there caught the US. Says. Oh win in the body. Wouldn't charge in the bonding. Anxious to big. Do you not get the feeling. That there's money going to terrorist. In drugs. May be controlling. Certain entities. Doesn't sound like to live and party as a blow parting look at pro active that does to me. I would ride back dubbed them via. Got a complicated were thinking about Wall Street Journal article that basically says if the Brooklyn into an orchard and I've not a liberal Republicans should. A reputed to have a Republican victory over roller from would herald is significant scaling back. Open intro regulations. Enacted after the 2008. Crisis. Woburn talking about is. Congress and on Google will simple. Years ago bull Ford cute dogs and they decided. People. A lot of people should have an opportunity to build the whole hole by hole. So Greg passed legislation. Making it easier with the bank's audit in the dutifully slowly. Came up with a plan that corpse 2008. Everything pro port it was wrong. A lot of people in congress world where a lot of people in the white outs in the highest level world where government. And the cost us. But most people know that cost us eight trillion dollars. You know your children and future generations will end up paying what they need it. So the very thought that they're going to reduce the regulations it's called the Dodd-Frank bowl rule and there reinstitute after the collapse in 2000 they'd gives me a little bit of someone captured but. Would talk to. Doctor Joan blooming wonder bra or GOP congressman. And he said really wanted this is the regulations or being force in the first please mug. They're doing it does porn there restricting. The market. And keeping the law and of eligible people from buying a home so they wanted to. Change that. Whatever dips problem getting go drew doctor Rajiv she and raring. Cameron professor and then a look through in these are an expert in international bank and preferably his banking financial markets doctors always thank you call. In part. We will be right. And connect that we are completely ear or. A. The ought to the top. Of the hour. Doctors. Could well. Doctor how. Well it. We're doing very signal. That stake in the early break and we'll call you. Too complicated struggle this again would try to keep it simple. The good book of world freed article that from reporting on the app from now that the 2008. And and from class. Leaked to the bank and congress. And the Wall Street Journal article says Republicans. Are trying to steal back. The financial regulations. In acted right now that prices. To regulate bank. We about doctor raunchy mission over every end with the L issue expert in banking from neutral market. Doctored thank you welcomed the show. Yeah are quite good idea of that. We need about. You know when the patient guy you'd get them there. You don't keep them on steroids were app where you got it we mop it LP. And oh regulation and we ought. What will ensure healthy living and other content senator. We are still admits steroid not moving into the LP and praise. And further merry of that argument and the operate caught a lot of banks and grant too caught up in the audience. And I'm compliant are probably a little bit of an Albert. Trout that we have all the infrastructure and links to regulate Rick seeking. No. And they were taking control of the economy. Yeah. So it if perk for now. Back in the car and cap and out game that goes on and eventually it will travel in any elaborate. News to. At this site and some Canadians. When people lose throats. I jumped and viewed India. When the broader view to you Britain to. And I sent him beget you can sort of old doing wrong draw. Fund and terrorists. And there. And told nobody's going to be towards an album being named opens bond and because they're too big to hold them to book. What happened 2008. Us us each and colors. Digital creations. Yes we did the that fuel regulations. Organ to a better Al. It. While you're at in you know where is being confident that the or you're gonna lead outcome. And I think the public is more confident than regulators are leap that the U. Apparently the. The slowed them and slowly dwindled they would they were fully wearable we. I would penetrated even aware of what we know what. I know Paul Austin. Others that they're bringing the government at that time. Jurors held knew what was happening in 2000 later current date solid column in new clubs out. Well what yet there were some early warning signs but the regulatory apparatus. About what that to regulate financial let them. Back in the nineteen MD needy. And eat at wal. They're the environment we haven't 2000. So there are a tremendous need for regulatory environment. Job. And about what a lot of regulations. Were seen bat. Not dot rank in not a panacea. And it got watt other issues that still need to be worked out. It's one example. Regulation. But perhaps. Air right it has. Ill. Al or it be a factor in the regulation. Is. Not. Properly aligned with what can be implement. Regulatory. Trowel. Yes they're some over reach. I definitely thinks oh but that that in the solution is nowhere. We may have skewed when we wanted to but changed his story. The blues who invalids inflation in the rule will be mall. That those that break point oh and Arabs than drug cartels. Will begin a team. Will be in charge. We'll get a trial. It would put that kind of thing and it. And the use too big of failed banks survive. He'd be comparing it and quote quote criminal activities. They can't sort. But the fact of the matter. In all all of these are being shuttled out of court and so the question you're asking is. Where the lines and the government in on par with the extent of the crime. Then one could make the argument could be at work but then prosecutors got the department prosecuted a lot of debt. Accept that the remarks here while. Well I wondered. What Eric holders that specifically. We can't name we came in short because the banks are too big to fail. I mean if. While that was a good well you can partition certain part. Right up yet the banks are too big to fail we were an important situation where that bank failed. It would cause the threat from the collapse. Yet but we're. I would be good at Brigham the while. If you break. Or one. You know probably in Europe what are. Where we are. Too good a lie about. Small and an animal. Dog yet. Hold off boredom take one board would break we yeah. At a broad sorts they would we will come right. Should have been your opponent through regulations. Enacted since 2008. In. Regulating banks would be scaled back. We have bug doctor Rajiv Hillary and with the expert in banking financial markets with only few. Doctor King do you think in anything in the rule to re Britain right added to word change. That would give people the believe. That whatever is done they can cross. It. Based seller make him available to more more you blew by home. Put together packages. Little concerned about drums packet who's. Well both packages to. And then the private industry org. Are all. A lot of the package are we put together still it. The local government sponsored companies like remain charity match. Well yeah. You know there a general lack of clock neared a stand. Yet but it the financial industry that needs to work career establishment. Otherwise there are beginning on. We're not gonna go to other money in the bank and the actor not gonna have money but. Look at what's happening. To be can. Because we don't have a problem that's why financial than years. One. Of them where you've seen and not have it. And you have to you know we. Probably idiosyncrasies. And that. You know sensitive balance that shows that it's too big to fail and yet. Lot of mistakes were made here in the situation where the banks have to be bailed out because not bail out real art. World we're out of time. But always a pleasure to have be complicated so dual dual follow up hopefully will give. Thank. Didn't can branch to agree on. One of her ticket. 130 and bonds. To an evening of its music withdraw and then some drug raid and reported and the setting pride in over with the eleven. And as the good doctor just said people and do my own pace again. In the government in the back and go back to what more points. Truth. Is like poor entry. Which nobody noise port. Double of the L big celebrity and fired three.