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Financial Crisis Inquiry Commission Chairman Phil Angelides on the increased regulations facing banks.
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Me Dimon of JPMorgan Chase had -- just made.
Figure -- up I'm holding up the New York Post where they where He was saying and complaining that the Basel III the European regulations.
Were quote anti American because they were requiring the bigger names including JPMorgan to have.
More than 9% of so called tier one capital -- the highest quality on the balance sheets vs and -- kinda stuff that's a little questionable like.
Mortgage backed securities -- and credit default swaps the costs of trouble in the past.
Is set of America to require that.
Not at all in fact I think it protects our nation's interest -- there were.
A number of big problems the lack of any kind of you know lanes on the freeway any kind of stop signs in a -- almost deregulated environment that allow -- with -- -- not enough.
Prod enough capital and not enough liquidity but part of the problem was there were regulations in place they just weren't they weren't and Forsythe grace that authority.
There -- there was a lot of authority there.
Regulators looked the other way.
And the political leadership didn't have the will them for some I agree with you but it.
Fundamentally.
We didn't have enough capital CN extraordinarily over leveraged institutions its interest in JPMorgan was probably the best capitalized.
And not enough liquidity and look I believe in the free market system that this is one area where we want stability.
Because the home nation depends on a stable financial system must be truthful.
As the record is shown when things go right the American people are the ones paying the price.
You know right now wages as a share of GDP are the lowest they've been since the Great Depression.
Of this as we came out of the recovery in 92% of the growth in this.
Economy when I say when we came out of the recession we really aren't technically.
We suppose they are 92% of the income goes on to corporate profit.
None -- wages so I'm not crying tears for Wall Street right now.
We need to get them in order.
We need to make sure it's stable we need to make sure there well capitalized and a reasonable regulatory regime -- assign the right balance hopefully we need to.
Three years later we're still -- a terrible price.
-- three years later tens of millions of people out of work but is the answer.
Years after the blow -- in 2008 is that the answer really to sue the banks Phil -- is that really going to help the job creation situation I've not given Wall Street past.
I'm just think it's taken this long and you guys were in charge of the inquiry commission to say here's what caused the crisis.
It is suing the banks -- -- war or whoever's best idea that are really make sure this doesn't happen again.
Well so first of all I mean suits are happening because.
At least according to suits there were wrongs committed and so look I don't believe we ought to be in the revenge I don't think we ought to be settling scores.
But we do have a system of justice and if people were defrauded.
If banks made misrepresentation.
When they sold mortgages if they didn't disclose relevant facts.
Then there ought to be consequence for that -- the ten biggest banks they've cited.
Today have 600 billion dollars in tangible common shareholder equity.
Do they have the capacity to pay out claims to people who are wrong.
If laws were violated -- I don't think we can go down the road of giving people a pass because.
If people have no consequence for violating laws they guarantee you -- do it again if someone -- a 7-Eleven.
And they still a thousand dollars and could settle the next day for 25 dollars and no admission of wrongdoing -- be back data.
We're a nation of laws we need to let these court cases go forward if the banks did wrong not all collectively bit of specific banks did wrong.
Then they ought to pay the consequences most importantly.
They had to make sure that if they were wrong to individuals or institutional investors like pension funds or mutual funds and that in fact they make it right.
Well in the end.
They're not doing so badly and that's a good thing but it's important to point out again.
Up 38% for their profits year over year and almost back to where they were since 2004 Phil thank you for joining us first on Fox Business it's good to see you.
Nice to see you as thank you so much Atlanta -- chairman of the financial crisis inquiry company.
