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'Exile on Wall Street' Author Mike Mayo breaks down what's wrong with big banks, regulation and Wall Street.
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Saying this that it wouldn't be very easy.
To find a Wall Street analysts who identifies.
With those protesters but our next guest.
Might identify what the -- the author of -- new book it's called exile on Wall Street one -- by.
To save the big banks from themselves and Mike Mayo is one of the well known banking analysts on Wall Street joins us now -- -- seem like.
Our is that true that you identify what they're -- down there.
While I.
Identify with a bit of the outrage they feel I'm outraged over some of our corporate practices I can understand why other people are outraged -- so you've written a book about that.
From the inside looking out a lot of people of criticized Wall Street.
From the outside looking in.
What's wrong with your business.
Well.
Capitalism didn't cause the crisis capitalism didn't cause the problems we have now a lack of capitalism is what caused the crisis.
And when I say I sympathy for a bit of the outraged I think we can all agree we need to have.
Better accountability starting at the top CEOs yeah we need to go ahead and have better economic justice.
We need to go ahead and not accept the status quo we need to have government working better we need to have.
Better transparency -- from each thing we need to allow firms to fail we need to have clout in the hands of the shareholders.
Not with entrenched boards and CEOs you're saying we need more regulation and we have right now not -- not not necessarily saying -- saying.
You know I'm one of the thousands of the guys the market to provide checks and balances what the capital markets do every day.
The eyes the market should -- to see the information act the information nation being sent -- to act incentives have been out of -- Too often people didn't act and a lot of time -- can't even see the information if you don't have market based.
-- checks and balances then you're going to get regulation I prefer market based controls and that's what.
What.
An example -- -- -- -- negative Data Co.
1993 KeyCorp which are bringing to book they don't reduce investment banking business that Brett when in 1990 not puppets sell -- on the big banks you don't get fired if he testified at congressional committees and he talks the media you don't get backlash the company issued trying to analyze.
We all covered and -- part of you know the conflict of interest and analysts swayed back and that's like ten years ago whatever it is or more and as anything change you know there was -- Henry Blodget -- there was this and that and it was the Eliot Spitzer gone after Wall Street it was demonized by people on Wall Street.
Is -- the same now as it was them so you're saying.
If you told me we'd be here now almost a decade later and less than 5% of the ratings from Wall Street would say sell now I wouldn't believe you.
When I testified -- senate banking committee in 2002 I thought things would really change instead they simply continue the same that practices after Enron WorldCom.
After the mortgage meltdown and is still takes place today.
-- some practical things that we could do.
Now that we haven't done and let me just set it up this way after the -- after -- -- jury or even during the crisis and always go back to the Lehman Brothers weekend for example in September of 2000 it.
And -- I personally had a lot of conversations.
Mostly off the air some on the air with Wall Street people who said.
Yeah this is gonna change our business big time it has -- we're gonna have to accept it.
Who's gonna be more regulation.
You know we brought this on ourselves those same people by the way would deny having those conversations now.
Because they say Dodd-Frank is too much there's too much regulation governments out to get us.
What can we do to change that mentality or what should we DO.
Wow I mean look at Glass-Steagall was 5% the size.
-- Dodd-Frank -- not you have a 100000 pages of regulation but if you're not going to enforce it.
But it doesn't really matter I'd like less regulation -- and some rules that you actually enforce suggest.
While such as.
One part of sarbanes Oxley I think we can all agree on is when the CEO -- his or her name.
One the annual report -- ten K they're held accountable buck stops here the buck stops and that hasn't been the case are right about that -- book what about CEO pay.
CE OP let's have the CEO's take their incentive pay three years after they retire.
You must be a popular guy out while this would be like BC you -- -- cable news ticker -- -- can't not stand cable news is of this too much of that you know to the point is we need the incentives in the top dogs the aligned with the -- dollars and it's not as bad presume.
Brazil the statutory directors of banks are personally liable right.
All gets the same place let's have the company's managed -- -- the long term good luck Mike with a book thank exile on Wall Street -- -- good security.
One analyst fight to save the big banks from themselves have actually started reading and try to finish that it --
