You're watching...
FBN’s Liz MacDonald discusses the persecution of J.P. Morgan and the loopholes in financial legislation.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
The hour we move on now to the woman who was cornered the market down but certain of these publicist Liz McDonough fox -- -- -- or spotting them that's the title of your new column on Fox Business -- -- right quarter -- the market on absurdities that's right when it comes to what's going out JPMorgan -- a bit DC reaction to it.
I was gonna call at the tedious orgy of self righteousness going on but that in think that would fly it may have given people the wrong -- -- there you got are so what is what are we talking about specifically what routes at certain part about here is the president went on ABC's the view talking about -- financial reform.
It's basically the new sheriff in town it's gonna stop what happened at JPMorgan Chase.
They're loopholes that congress wrote into that law that would have said look at you know.
The short term trades that happen or hedges at happened at JPMorgan -- likely would have been exempted -- Dodd-Frank these basically.
With a long term trade actually in -- particular niches and long term trees always -- long term investments that would have been exempted under count was completely implemented.
And they did the same thing they're doing you know if the Volcker Rule was in place and all the rest they still wouldn't have been breaking any rules -- yeah that's right that's the point and Dodd-Frank -- short term trades.
Like these.
And that would have a particular case it wouldn't have qualified so the other issue -- is is that there are other loopholes and Dodd-Frank in other words if the credit derivatives they were built on Fannie Mae or Freddie Mac.
Bonds they possibly could have been exempted -- they're built on treasury -- been built built on treasuries they would have been accent and again that's -- -- under threat does that -- into the law about that have a question about that specific.
So okay because the big debate now is whether JPMorgan was making a bet or they were hedging.
Their best to try to prevent more downside so when you say that they would have been exempt under the law hadn't been in place.
Are you -- Are you saying or implying that maybe we need stronger rules so that they shouldn't be exempt or saying that this is this all the whole thing is -- I'm saying the whole thing is nonsense look I'm not out defending JPMorgan Chase because let's face -- they were the first with a tin cup outstretched to Washington DC.
They've been preceded AIG in getting the Federal Reserve -- use -- that are reserves on balance sheet to take on Bear Stearns rotten assets.
Before JPMorgan Chase -- but they also got the treasury to.
Get tax breaks to the banks are among the group of banks want to tax breaks.
When they bought rotten banks like Washington Mutual so they could use that on their tax returns to get a bigger tax refund.
But the thing is what we're seeing now with the Federal Reserve has -- zero interest rate policy there's a big Paper chase on among the banks to get yields right because of the loans are bringing in a lot of money -- did in basically pacing at that paying microscopic.
Deposit returns so there's a Paper chase on second Atlanta -- -- best part of the next.
But now we've got talk about clawing back compensation that at JPMorgan Chase with -- speak JP apparently have the policy -- erratic.
Look at I don't see the president out there talking about the investor losses -- MF global nor the taxpayer backed Fannie Mae or Freddie Mac.
Nor Medicare fraud we don't see those kinds of conversely.
It's just check was McDonnell pointing out the absurdities and you can read more about it on foxbusiness.com what do you -- today -- -- covered -- -- -- George sources bet on gold whether or not it was right or wrong looks like he's taken -- -- Basically the loser -- golden -- copiers and look forward to that throughout the day -- from Elizabeth MacDonald on Fox Business.
