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Wells Fargo Chief Economist John Silvia on the impact of regulations on the financial sector.
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-- Jamie Dimon accepting an invitation to be kind of rude not to to testify before the senate banking committee or the bank's two billion dollar trading loss this is your bottom illustration.
Ramps up its call for tougher bank regulations new ones.
But will more regulations do more harm than good Wells Fargo chief economist John Soviet joins us now John good to see -- thank you for being here -- see -- So -- -- -- do you think that what happened to JPMorgan and that number two billion may rise even this four billion even if it was to rise to four billion dollars it's still a fraction.
The company's assets it never put.
Shareholders or depositors and risk.
Do you think that are rises to the level of of new senate hearings.
Body that challenges -- -- mainly what I think Jason the fellow maybe took a few minutes ago talked about and that's uncertainty.
I think the reality is for.
Congress passes legislation like the Dodd-Frank they discuss issues like the vocal role.
But until -- becomes clarified what actually these laws mean.
In terms -- practice to what the vocal rule mean it really means in practice this a high level of uncertainty and I think that's what we're seeing right now.
It turns up as you suggested.
A new set of regulations -- constantly.
Changing in regulation creates uncertainty in the market place.
That uncertainty leads to less credit availability and slower economic growth and that may -- one explanation of why we're seeing slow growth -- of but John you after -- -- -- to the rule of law of the land to the new rules and new regulation I don't see any signs.
That any of those rules or any of those statutes were violated -- yet they are unleashing the FBI look at MF global.
Run by Jon Corzine an institution that was decimated destroyed it by some trades that that use customer funds are clearly seems that they use cuts -- That violated rules yet the FBI hasn't been brought out in that account but they have.
In the account of Jamie Dimon why do you think.
-- -- I think the big challenge David is when you're dealing with these big foggy UA areas.
That's -- that I'll I'll lot of uncertainty comes and and you know.
People in the financial markets are not sure about what the government's looking -- -- show in the government.
Does its investigations and -- talked to Jamie Dimon on the health.
They'll be searching for -- what is this whole thing going on here and and how does this fit into -- -- -- by credit make it easy for you John let me make it -- not.
Jon Corzine is a big -- alert now for president Obama's reelection -- Jamie Dimon has spoken out against president Obama's regulations and said -- is barely a Democrat.
Kuwait said it's.
Out well.
Everything and watches politics and I think we all know that and that's the big give -- -- of the system as a whole and that's what we're facing here is.
These rules that these regulations are going to reflect.
The -- -- as you know.
Pot of this election is going to be about regulatory process season -- intent.
And that's why once again a lot of these institutions as saying.
You know do we have a fiscal -- at the -- what happens with Obama care what happens with Dodd-Frank.
All these issues reflecting this future election.
And it's politics at the end of the day that's gonna decide these issues John Silvia Wells Fargo chief economist John great to see you thank you for being here -- -- negative sure --
