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All opposition to the vocal rule is growing on Wall Street and maybe even in Washington -- Charlie Gasparino joins us now with -- a special guest president Spencer -- -- find out if the rule can actually survive in its current form showing.
Maybe not -- Spencer has his way yes we're gonna -- spoke to Spencer right now we haven't -- would recover buckets out what is what you sit next to.
What is that pile sitting next to.
This is Dodd-Frank regulations Charlie I'm not.
It fills a cardboard box and every small bank every.
Small financial company.
Community bank ninth street bank they've got to comply with this now where only 27 personal way through the rule making so.
As I say on them for commercials.
And there's more.
This is just the first of four big stacked.
That's just one of the four big stacks I'm assuming a most yeah most of -- bank executives have added.
Haven't read it on your yesterday makes you think you've made some news that you're gonna hold hearings on at least one aspect of Dodd-Frank known as the -- rule.
Which prevents banks stops banks from doing proprietary trading trading with their own capital also forces them.
Out of had some hedge fund investments what is your problem with those two parts of Dodd-Frank.
Well vocal -- course derives its nine from Paul Volcker and -- revoke or actually said that proprietary trading didn't -- financial meltdown.
That this country witness so what is the cause of our problems so your fiction -- That didn't call support the problem now it did generate profits for the banks and if you're against profits.
You probably ought to be against -- vocal rules -- profits create jobs He also said -- what the Volcker Rule does it trusted to time.
Trading permissible proprietary trading.
But Paul broker again He said it's almost impossible to -- -- bright line between.
-- legitimate market making activities in Beijing.
And proprietary trading so.
-- vote for himself basically says.
It's hard to define it and and I don't know the treasuries issued.
383 question and if you can answer all those questions you may can be found whether or certain parade is.
Well -- -- -- are you gonna try to get rid of the Volcker Rule.
Well I think how I am unless we can -- will -- question.
Yeah hello -- watch -- let's that's when it came up here yeah when it came up.
How is -- gonna.
Advantage or disadvantage American.
Financial institutions against her foreign competition.
And we were -- that other countries quote we're gonna adopt the vocal -- so it wouldn't disadvantages.
Well guess what Charlie none of those countries have adopted -- -- in fact.
They've rejected the Volcker Rule and it's gonna move jobs from the United States.
Overseas so I think what the question -- -- is are you against.
Creating jobs in the United States.
Or you are do you wanna move jobs overseas and -- answer the first one.
Is I wanna promote job creation here and I don't wanna move jobs overseas -- fact.
We've already had companies that have announced that they're gonna have to move thousands of controversially.
Presumably you're gonna be asking those questions at the hearings as we reported you see you're gonna have hearings in November -- -- planning to do that.
Who we're going to ask those questions to it's kind of a big quite you know when I reported this I spoke to some people on Wall Street.
They are expecting.
Possibly does subpoenas or or our requests from you from your committee -- the house financial services committee to -- Tim Geithner is that a possibility.
While we wouldn't have to some kind of the the treasury Schechter where she was before our committee last week and -- have what about all these regulations right.
3700 new regulations last year 4300 in the pipeline.
Over 200 -- have an economic output terrible we US and to help you do hear his.
We US and -- -- and He He won't need to subpoena but Octavia well as key news right -- so you'll S Tim Geithner coming -- these hearings.
Have a Kessler military and at the -- Donald lamps on Donald as a got -- -- department that helped write the rules.
He said to the New York Times this last way.
-- -- -- -- Is going to cost jobs is gonna cost.
Competitors it'll travel wise the most productive right and employees.
He says it's going to.
Negatively impact profits and it's gonna drive up call what you seem to do -- listen to -- worked on the -- Charlotte.
Absolutely you seem to be channeling Jamie Dimon the CEO of JPMorgan Chase and that's many the same criticisms.
Just the Volcker Rule but of Dodd-Frank you know generally is this hurting competitiveness of banks preventing them from from lending.
Rising cost of consumer products -- -- one -- -- Bank of America had to raise those fees on its debit cards is because it of course imposed by Dodd-Frank.
Will you be calling Jamie Dimon to -- hearings.
Let me say this is not the banks -- that I folks -- economy is a job to see American people.
In this shouldn't just about banks this is about the economy this is about our financial structure this is about.
Our whole system of -- so.
-- of captain of of capital created a that's a -- that capital that that's -- -- Jamie yes -- Geithner.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- A I -- -- make great theater you and Jamie Dimon who Tim Geithner sitting right next to.
Or question I ask -- -- -- out Tim Geithner.
Tim Geithner last week said the banks aren't taking enough risk.
And every day they examiners -- on the banks tell on the banks not to take risks.
I'm just really don't know.
What Tim command of what He said last week is that he's really and you know -- respect his intelligence but I think he's out of touch with with reality.
Talked any regional bank talk to any bank examiners -- in the banks tell mom.
-- loan to and do not too long to and not to take risks.
All right well and He comes out and says the banks need to take more risk now I thought the Volcker Rule was supposed designed to take less risk but I tell you what.
If the banks started losing millions of dollars or billions of dollars is -- -- college the American people.
Did they actually believe that we're totally detached detach -- our financial system are buying.
You Damon -- -- -- -- she demonize the American people.
Well they go we're gonna have to leave it there congressman bachus thank you I guess -- -- -- Gaidar -- doing lines guises Spencer Bachus thinks Tim Geithner is out of touch reality.
In fact you can we'll try and repeal the Volcker and I -- it really.
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