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FBN's Charlie Gasparino on the Financial Services Committee's plans to hold hearings on the Volcker Rule's impact on Wall Street in November.
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Interesting stuff.
-- regulators have approved the controversial part of the financial reform overhaul from last year known as the Volcker Rule -- -- -- has an exclusive details you -- my question is -- congress have a role to play in this congress congress is oversight role particularly the house financial services committee run by.
Spencer Bachus has so oversight role so they can influence the the way this rule is is ultimately -- its draft form deeper -- its proprietary trading.
And hedge fund investing by banks banks say it's squeezing profits are ready here's what we know.
The Fox Business workers line is that that that the financial services committee run by senator -- congressman but Spencer Bachus.
Wants to hold and plants often.
Hearings on the -- rule on its impact on Wall Street sometime in November.
It's pretty interesting they wanna give this a thorough review this is the first that we've heard about this any congressional committee.
Actually focusing on the -- -- post it's sort of implementation oppose its its the the fact that it's now being draft for.
Form and it's really adjusting.
It's likely to do likely to call as witnesses people from the SEC the Fed the FDIC.
All the major regulators and what that means is that you can see Mary Schapiro witness could -- Treasury Secretary Geithner who plays a role the vocal rule as well.
The witness.
We could see anybody the Fed Chairman.
Ben Bernanke be be a witness -- and they do not have the witness list we are told but those are the potential people -- -- come to talk about this.
It's pretty -- that there is a political battle going on here no doubt Republicans are ramping up their criticism.
Of Dodd-Frank the Volcker Rule is part of Dodd-Frank -- was introduced by Paul Volcker former Fed Chairman Ben has been an advisor to to the president on economic matters.
And now it's being implemented and with the banks the same as this.
And they do have a friendly ear in it with the Republicans in congress much more free market order or into the -- this proprietary trading and hedge -- investment.
Had nothing to do really with a financial person I can tell you that make a good case here but had to do with the financial crisis well.
We don't -- all they would be it a lot at lot of the customer related business where they were packaging.
CDOs a mortgage backed securities left on their books that is not.
-- that is -- outlook -- -- but there's other stuff.
Which is somewhat risky trading up bonds and stocks hedge fund investing but that wasn't really at the heart of the of of the finance crisis.
And that is what squeezing them Goldman Sachs you'll see their earnings.
In the next couple days they're gonna be squeezed by the very fact they can't do proprietary trading that's what they were great at.
So this is really interest in Republicans are gonna take it up and they're gonna attack I believe Dodd-Frank to -- are gonna show how.
Basically the vocal rule basically hurts our bank's competitiveness because they can't do these these certain practices.
And the other thing is they're actually gonna go away after him on the consumer -- aspect as well they're gonna say.
If -- met at Bank of America.
For proposing a five dollar debit card usage -- a month.
Oh by the way.
-- Dick Durbin who passed an amendment to the finance reform law.
They're basically -- increased their fees on certain transactions which merely got passed on to the consumer so this is the second leg of their attacks.
A baucus is people are telling us it's gonna happen and in November.
As can be pretty interesting to be interest and see what the witness list is remember there's a host of federal regulators that look over Wall Street now the Fed the SEC.
You name it you know the role there there'll potential witness to treasury as well support.
Everyone's awaiting the uncertainties removed.
Finally have that Volcker Rule written the way it's going to be -- and the very you know a its final.
You know and it's coming and it's coming as bank profits are -- we're going to be talking Thursday about JPMorgan and all the protesters are over there.
Protest in JPMorgan but guess what they're gonna they may not have such a great quarter.
Which means I don't pay a lot of money into New -- -- it taxes question which hurts their course I don't think -- as it has and where are looking at how some kids and those guys over there lay off about that was that was reported to us the other day and you as well with all the layoffs comes going to be much more than that.
Charlie thank you just brought up another.
