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Rep. David Schweikert, (R-Ariz.), on J.P. Morgan’s losses sparking calls to increase regulations on banks.
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Congressman Davis -- Member of the house financial services committee and congressman good to have you with us.
My go to zero losing two billion dollars an FBI investigation all the regulators descending on chase.
Mind lord it would be if it's almost unthinkable that any trading desk for any reason of any kind -- -- lose money and especially that.
Much money.
And they apparently there.
Well did you notice how quickly.
The trading loss became an excuse for expanded regulations.
And why these regulations are wonderful and build the reality of it is.
Look what it was at this quarter.
Their trading profits.
We're still going to be four plus billion dollars on a book of business that hundred billion dollars so look to three billion is a huge loss.
But when you have a hundred billion dollar book.
-- -- if it's in the margins you don't wanna see it.
Investigate -- that's absolutely proper.
Maybe even congress should hold a hearing on it but don't you -- -- has an excuse that somehow we need more regulations before you actually know what happened.
But when we think about it this way to congressman and by the way and notional I do not like anything I despise regulate.
-- -- But the fact of the matter is banking as a regulated industry has always been this is not something new.
That is suddenly interjected itself into the the body politic and business.
And banking over the course of the last week this it is always been traditionally a regulated.
It industry.
But what Lou I was disturbed me -- Is the idea that Dodd-Frank is sort of being respond together as it goes regulators have framing regulations.
And the Volcker Rule which was except that adopted and put into effect now is -- has been moved from the effective dated June 21.
When news with the rest of Dodd-Frank would come and acquire the next tranche of it.
Opt now for two years to 2014.
You folks -- playing games in Washington again and I don't like.
Smell of that.
-- look I'm standing in front of the camera green with -- right now.
I'll look that the political feeder is that looks for any opportunity to move one -- agenda over the other.
But you gotta deal with some of the reality.
Only 13.
Of Dodd-Frank has actually been even from negated in the rules right.
So up for a lot of this it's almost ethereal think well would this be a trading violations.
But even to your point about banking being -- regulated activities.
Understand how many activities now are in big money center banking there's interest rates hedging this hedging for clients this hedging for their own book of business back.
What I'm concerned with his word they speculating with their own money.
Shareholders' money are where they speculating with money that ultimately you -- -- tax -- -- regularly used throughout DIA FDIC.
Congressman -- you know if the regulators who are not in credit -- don't know the answer to that.
And shame on them and that from across the board those regulators and -- your -- ones who should be.
Called to testify before your committee and my opinion.
Before Jamie Dimon the CEO because it's their job embedded their president to be accounted for and to be accountable.
We disagree in the next step got ya I -- even go to the next step the ones who should be really annoyed out there are the shareholders.
And you saw the shareholders take down the stock over the last few days as an expression of that concern.
That's the way it's supposed to work as long as there's that separation where they're not playing games with money that you and I ultimately -- insuring.
And they're using we're just -- you promise me as your won't you won't decide suddenly that chases of all things too big to fail.
But my answer to that question is always.
You're building a regime a regulation that keeps the next midsize bank from becoming the big day.
You we have crush the ability for -- to be competition in the banking world now by our own regulations.
-- six banks who got 80% of the -- we've got a little bit of a problem.
But it's a great example that I -- -- and a lot -- to get to that example congressman apologized but we're so we're out of time.
