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-- giants from Nebraska let's stay with this for a moment is to bring in Leo -- the former AT&T broadband CEOs Intermedia partners these days an all kinds of different things but you're listening to -- by the -- -- history here artist is the senator on the right track and they are -- would you take the other side of this.
You know I thought the senator was right on right there except for two points that you you can't.
Legislate against stupid absolutely that's what I -- -- legislate against stupid is is what largely caused the crisis of -- -- -- nine.
There there's -- leading Connell between the lending side of banking.
And in this proprietary trading side and we've heard in the last 48 hours.
From the defenders that somehow by reining in the trading side frank you're going to diminish her -- emasculated the lending side that's simply not.
You can't do that you have to allow.
-- -- quote free markets to work but why is this not true in your point if you can explain it.
Well because because of the crisis from -- we are left with banks who are -- -- too big to fail.
And at the at the angst around JPMorgan is it's one of those banks is also a big bet that some people say Dodd-Frank makes it did that we have a resolution authority and that we could work -- Stripped out of the knowing you don't think so well did -- hear the senator is as his other comments say that Dodd-Frank is as a principal matters should not have been addressed.
But that's just that's been with all respect just lunacy I mean we can never have an experience like we had an 89 and ten.
So what we need to do is take this great bank -- JPMorgan is and wonderful bank it's the probably the best in the world in my opinion.
Certainly the best managed by Jamie Dimon.
Yet something happen that is really magnificent in terms of this debate and we have to figure it out as the senator said.
But if in fact it was stupid.
Well then let's call it that can legislate against -- how do you do that.
Well the it's this proprietary trading staff expected that Volcker had Paul Walker has the has commented on we -- even the definition of that or if what JPMorgan was doing it it's not exactly clear to me.
Whether what they were doing would have violated that quote -- Volcker Rule because is -- it's really tough to define I'm not enemies and a good job -- -- hedge.
Well and and -- what.
My understanding -- may be wrong but my understanding is that they were looking at the prospects of earnings.
Out of the Europe crisis and saying that's going to be hard on the bank now going forward and so they they were.
They were doing a proprietary hedge against falling earnings out of the UK and the rest of Europe.
And they -- badly.
And it was a mistake by everybody's majored in that the that the trade they put on was ill advised and ill conceived.
Yet it cost two billion dollars in a number rising if he could get as high as four billion dollars as we've been we've been told.
Yet if this best bank can make a mistake and that ordered its not gonna hurt this bank the bank is too big.
But what about the bank in Ohio in the bank in Pennsylvania in in the the mid -- banks here in the united states of but the bigger concern are the big banks that it would have been a bigger mistake to JPMorgan made that we have to come as would have to bail out those mid.
French banks in Ohio but we would have to bail out of JPMorgan if it made an even bigger mistake what if two becomes 4000000002 billion becomes four billion I mean.
It it shows the fragility of the proprietary trading side which is grown geometrically as the banks have grown geometrically.
Can -- bottom line before and what you gonna secondly can you bottom line on what we need that we don't have or that we haven't discussed well I think you do go where we're senators Joseph -- wanted to take you which despite up.
With all precision what what in fact happened here.
And then have the debate on the Volcker Rule on this leaving between lending and proprietary trading Leo it's always great to see you want to -- -- hopefully to talk about the economy more broadly in all the had doing -- not doing well I don't think so I'm not I don't think so I think we're.
I think there's so many low hanging fruit opportunities to revitalize employment.
-- we're having this meeting today down in Washington between the leadership among the leadership.
They're not gonna talk about any of them they're gonna talk about deficits and and reining in the deficit but you gotta you gotta do something to get this economy back on track spends more money has I think their appointments very.
Is to create jobs aren't -- thank you come -- my pleasure Leo Hendry with the so.
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