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WL Ross & Co. CEO Wilbur Ross on why it is easier to do business in Europe because of mounting regulations in the U.S.
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-- -- but my next guest says it's actually easier for him to do business there because too many regulations here billionaire investor Wilbur Ross joins me now.
In studio Wilbur is always nice to have you.
Good idea not call your prayer and your -- really an inspiration because you bought them where everyone else's -- that you don't sort of market economic fire -- -- -- well.
But you've resurrected some things in the hey you are now.
Ready to go into the biggest farm the -- Europe because it's it's easier to do business there -- here it's remarkably.
Well.
The European banking regulators and European governments are welcoming private equity into banks.
Whereas here.
The regulators had put -- usual restrictions on private equity participation.
And failed banks that's the difference.
OK so is that why we get like this JPMorgan trade.
But the two billion dollar loss perhaps more.
Happening out of London that could tell -- something like that could never happen here in American regulators would say that's a good thing.
Well another intimate with the details of the JPMorgan trade but I do think it's been blown totally out of proportion.
That's a fraction of the earnings from JPMorgan.
It's a rounding error relative to their total assets.
Doesn't threaten the network.
And contrary to what some of the congress people were saying which was -- losing our money meeting government money.
Well -- it's not true there's no TARP money and JPMorgan.
So I think the whole thing got blown.
Out of -- -- I don't disagree T earlier we did a segment about the president doubling down in green energy you know we lost taxpayer money with some lenders JPMorgan lost their own money.
And I think that's -- capitalism is all about I actually thought it was good that that the banks don't always win and maybe this -- -- after all all well.
You know there's no such thing as a perfect hedge and there's also no such thing as a trader whether he's hedging her not -- never makes a mistake.
You can't legislate against our.
So you're saying that the Europeans are saying okay -- welcome you would put the put the private equity what the bank do whatever you have to do.
Come -- set up shop here.
Are you do you worry somewhat about like the bait and switch aspect of it how rapidly these governments are changing.
Or the tax policies -- do any of those things kind of give you pause.
Well governments always like money better when you putting -- then then when none of taking that out of their profit cycle.
There is there is some risk of that happening.
Up from what I understand what there are three specific agencies hearing United States that really and we -- got a minute but I wanted to call amount I want you to call amount.
I guess the Federal Reserve the Office of the Comptroller of the Currency in the FDIC right what are these three going quickly.
That's that's scaring away.
Rate tremendous businessman like yourself.
Well.
We I don't bulletin number of banks from FDIC.
-- we did it mostly before they put in some of the new restrictions.
Namely they won't let you resell your shares for at least three years.
They make you put in more capital than regular non private equity bank would have to.
And that's sterilize is the capital makes it harder to make a good bit on the next failed bank.
And then finally the most silly thing case of bankunited which is an eleven billion dollar bank.
I'm not permitted not only not to borrow.
Which is fine I can even deposit more than 500000.
Dollars in the back.
51 hundredths 051 thousandths.
Of 1% of the bank's deposits.
However they think the bank it's going to revive itself I can't believe that the same sort of people.
That a one is that the argument of saying we need to pump -- money we need to tax people we need to grow the top line no austerity.
What stopped businesspeople like.
In other Tellme or -- -- time over but it just it absolutely.
Shocks me want someone like you start to take business out of this country that's a huge red flag and hopefully wake up call.
Appreciate your time --
