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Today at the G-20 summit in -- President Obama defended his handling of the American economy and he did so on a day that.
We got so some news on October employment and unemployment but surprised the good news.
On September and August numbers they were changed a little bit -- sometimes new information comes in and actually look better than we had originally thought.
Joining us now -- a Fox Business.
As it is Robert.
UBS American chairman and member of the president's council on jobs and competitiveness.
What upward revisions certainly change a picture don't date and it looks like September and August -- better and then we've got a tick down for the unemployment rate to 9% this time around.
I think it was a surprisingly good number today and know that the consensus was about a hundred so October with little under that at eighty but if you look at revisions.
With August and -- a -- September north of a 100000.
-- average work week went off which is great that people really don't talk about so that's more money in consumers' pockets.
And then you have the unemployment number go down so I think all in all.
Pretty good number.
October 11 you were here and you said that you would just met with the president and there were five points that you were pushing a long way to jobs and competitiveness group.
And you cited an infrastructure is being the number one most important thing.
Are you getting any traction where do we stand on that from the White House -- good timing the bill was turned down yesterday that the president put in front of congress sixty billion of infrastructure.
Just to reiterate it's the fastest multiplier of GDP growth for every dollar spent.
That's one point six times multiplier.
For every billions spent about 25000 -- -- -- huge mistake to turn it I think a big mistake I think that it's very bipartisan.
Certainly politics from both sides play play a role today and what gets passed and what doesn't but I think if you speak to the business community.
If you speak one to one to politicians.
I think everyone's support about infrastructure in this country well let's hope we see some of that some job creation because 85000.
It's not quite enough all right let's take it to pop is gonna set at one more thing for us in today's numbers.
Although we've had two and a half million private sector jobs in twenty months today's numbers 25000 lost jobs in construction.
That would have been a real plus with this infrastructure.
Would have been passed that's where we need jobs and infrastructure let's go to the G-20 in the right where in the past couple of.
Hours the financial stability board said.
That you along with 28 other big financial institutions -- have more capital on your balance sheets -- to systemically important -- -- even a name that.
G cities which global systemically important financial.
Organizations and you look at this and you say.
Does the G-20.
Know what it's talking about doing it more -- water -- quality capital -- books and secondly to use UBS have a living will plan.
That this ability -- and all of you -- should really have.
So two things one we're not surprise where systemically important institution where one of the largest in the world.
From my perspective it's not new news we have been building up our capital now for three plus years.
What would argue that -- our tier one comment that actually when equity is north of 15%.
Seventeen plus percent -- -- the near highest in the world so.
You know we have a regulator and -- -- that's expecting a higher tier one capital for us.
We've been moving towards that over the last three years so we're very comfortable with our capital base.
You know and -- not surprised that.
You know what we learned during the Lehman crisis is equity is that -- everything else is not equities so we're not surprised that it needs to be a strong underpinning and -- market.
Certainly there's a debate.
On what that number should be and and we hope there's a globally coordinated no good to match another if they sit at another 3.5 percent or so.
Is out of ridiculous level -- sad affair it wouldn't likely impact us that much because we're already higher than most all over the world.
But certainly I think it would be a real debate what is the right amount of equity need on the pending disputes yes have a -- will plant meaning a plan to unwind in case gets into trouble so that the taxpayer isn't socked with the bill as we saw -- with cheap I think everyone is working on contingent.
Weighs in case you know.
You'll one of those firms that unfortunately have a resolution authority type of type of an environment.
We're working on what -- -- forces us to work so we're working on contingent plans in case we have to have another 20072008.
Because you and I know how the taxpayers done with with helping anybody get out of -- and as we have to think the taxpayer for what they've done for our industry little more often.
I'm sure the people -- Occupy Wall Street and actually frankly many regular Americans would agree to.
Let me get to MF global because here's a financial institution obviously smaller than you guys that is really gyrating any exposure there.
We don't but.
You know I have a lot of friends and -- and -- global you know my view is.
I'm hopeful that all works out in -- not the one that.
Enjoys -- our competitors and -- appears -- well I hope they all do well and help.
That this gets rectified quickly but Robert they -- -- Forty to one and people can't believe that risk and compliance comes to this point and you know you guys have a rogue trader who didn't put you in the hole for about two billion dollars.
What changes have you made to make sure that doesn't happen well we've reduced our leverage by over 60% since 07 we were 55 times levered at the height of the crisis away so -- -- The truth is leverage is not really the key because today you can have leverage but cash on the balance sheet it still counts is leverage what are you -- now you have to look at equity out leverages my guess is in the low twenties.
Type of thing if you look -- true leverage but -- really like I said we have a lot of cash on hand.
Well will be watching your good work for -- the United States of America with the jobs council thank you for thank you were working hard on -- I know you are and a lot of CEOs Paul Otellini Jeff Immelt says very good -- -- the -- people Robert wolf chairman of UBS America's come back again yet look forward to -- thank you seeing here.
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